What is a Medical expense deduction?
The medical expense deduction allows taxpayers to deduct qualifying healthcare costs that exceed 7.5% of their adjusted gross income when itemizing deductions on Schedule A. Qualifying expenses include payments to healthcare providers, prescription medications, medical equipment, and transportation costs for medical care. The deduction requires detailed documentation and applies only to unreimbursed medical expenses. Taxpayers must itemize deductions rather than claim the standard deduction to benefit from medical expense deductions. Strategic timing of medical expenses can help taxpayers exceed the AGI threshold and maximize Health savings account benefits.
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