Category Archives: Tax Tips

Affordable Care Act Tax Provisions #3

Itemized Deduction for Medical Expenses Changes

Beginning January 1, 2013, the rate you can take for your medical expenses is now 10% of your adjusted gross income (prior % was 7.5%).  These are all eligible medical expenses that you pay out of pocket for (not covered by your insurance).  If you or your spouse are over 65, then you are still eligible for the 7.5% of your adjusted gross income until the end of 2017.  If you turn 65 in 2014, on the 2013 tax return, you will use the 10% threshold and on the 2014 tax return you will return to the 7.5% threshold until the exemption 12/31/17.