What is the Medical expense deduction?
The medical expense deduction allows itemizers to deduct qualifying healthcare costs that exceed 7.5% of adjusted gross income on Schedule A. Eligible expenses include health insurance premiums paid with after-tax dollars, prescription medications, medical equipment, doctor fees, hospital costs, dental care, vision expenses, and mileage for medical transportation. For example, a taxpayer with $100,000 AGI faces a $7,500 threshold, meaning only medical expenses above this amount are deductible. Strategic bunching of elective procedures and medical purchases into a single tax year can help exceed the threshold. Consider Health savings accounts for tax-advantaged medical expense planning, without the need for itemization.
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