Tax preparation expert explains that taxpayers can now deduct medical expenses of up to 10% of their AGI, meaning expenses must be higher to take advantage.
May 30, 2016 — Traverse City Tax Preparation Planner Frank Ellis has revealed medical expense tax deductions, plus a new 10% expense threshold for tax deductions. In 2016, uncovered medical expenses will be deductible when itemizing deductions on a tax return. This year, instead of 7.5%, the threshold for deducting medical expenses is 10% of one’s AGI.
The author explains medical expenses now have to be higher for one to take advantage, while those over 65 won’t be affected until 2017. Ellis also goes on to list a series of overlooked medical expenses. These include travel costs, which he identifies the increased amount that is applicable for deductions.
Other medical expenses that can be deducted include long term care insurance premiums, costs prescribed by a doctor, and admission/travel to medical conferences for the taxpayer, their spouse, or dependence who suffer from an illness. Substance abuse treatments, weight loss programs, recliners for cardiac patients, reconstructive breast surgery, orthopedic shores, and other costs are listed as well.
The author explains medical expenses apply for one’s spouse and dependents, while parents count in the case the taxpayer provides more than half of their support. Also, one can still claim expenses even if a dependent died during the tax year, Ellis explains.
Careful planning is needed when paying medical expenses. With that, it’s possible to save money during tax time. The author also explains that TurboTax provides the questions needed to get the right deductions and get a big refund. He also suggests the free TurboTax refund calculator. http://filemytaxesonline.org/calculate-your-tax-refund/
To learn more about medical expense tax deductions and the updated threshold for 2016, go to http://www.examiner.com/article/medical-expense-tax-deductions-the-new-10-expense-threshold?cid=db_articles.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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Traverse City, Michigan 49686