![]() The medical expense deduction lowers the taxable income of people who spent more than 7.5% of their adjusted gross income (AGI) on prescriptions, disease treatment, doctor's fees, and other medical costs during the tax year. While items like student loan interest and IRA contributions can be deducted from your gross income without itemization, medical and dental expenses require that you itemize your deductions on Form 1040, Schedule A. Tax deductions reduce your taxable income and lower your overall tax liability. Couples that are married but file separate returns must follow certain guidelines depending on whether they live in a non-community property state or a community property state, and both have to itemize or take the standard deduction. You may also include expenses paid for someone that does not live with you, like a parent, if they are considered a qualifying relative. If you file jointly with your spouse and/or claim dependents, typically everyone's medical expenses can be combined. You itemize your deductions instead of taking the standard deduction. ![]()
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