Do you think it was difficult to qualify for medical expense deductions in the past? It’s harder than ever due to new rules taking effect on 2013 returns.
Strategy: Leave no stone unturned to find deductible expenses. If you take the time to conduct a thorough search of your records, you may be pleasantly surprised.
At least medical expense deductions aren’t reduced for higher-income taxpayers under the Pease rule.
Here’s the whole story: Beginning with your 2013 return, medical expenses are generally deductible only to the extent the annual total exceeds 10% of your adjusted gross income (AGI). Previously, the limit was 7.5% of AGI.
For example, if you have an annual $100,000 AGI and $9,500 of unreimbursed medical expenses in 2013, you can’t deduct any expenses. The total doesn’t exceed 10% of your AGI, or $10,000. Before this year, you could have deducted $2,000 in medical expenses [$9,500 – (7.5% of $100,000)].
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