On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
The itemized deduction for medical expenses are limited in the following manner:
AGI Threshold – The AGI threshold percentage for claiming medical expenses on a taxpayer’s Schedule A is increased from 7.5% to 10%, which is the same as the current threshold percentage for alternative minimum tax (AMT) purposes.
Delayed Implementation for Seniors – Individuals (and their spouses) age 65 (before close of year) and older will continue to use the 7.5% rate though 2016.
AMT & Regular Tax AGI Limit Become the Same The Medical AGI Threshold for AMT is also 10%. Thus, with the implementation of the 10% threshold for regular tax, there will no longer be a medical adjustment for AMT. However, through 2016, seniors with medical expenses who are subject to AMT will have an AMT medical adjustment. |