New medical tax breaks in bloom? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
You may have heard rumors or seen headlines about more-generous deductions available for your medical expenses. Be aware that those are still only proposals. Current law is still in force: You can deduct medical expenses only after they exceed 7.5 percent of your adjusted gross income (AGI). President Bush is urging Congress to approve:
• Bigger deductions for amounts spent by insured taxpayers for co-payments, deductibles and un-reimbursed healthcare expenses. • Expanded tax breaks for health savings accounts (HSAs). • Greater portability of existing health insurance policies for taxpayers changing jobs or starting new businesses, at no extra cost.