Suggestions

:speech_balloon:

Limit to only Medical/Health Care Tax Exemptions that exceed 7.5% of AGI

When tagging an expense as tax exempt, and in this case “only when itemized”, it looks like the full amount is being applied as a tax deduction.

My feature request is to correctly account for Medical Tax Deductions which must be in excess of 7.5% of AGI.

I think the most user flexible way would be to have another check box pop up after the user selected “Tax Deductible” that’s titled “Tax Deductible Medical Expense”. When selected PL displays, “Treat this as a tax deductible Medical Expense, and only deduct expenses in excess 7.5% of AGI and when Itemizing.”

Or it could just be it’s own box independent of the current Tax Exempt selection box only allowing one or none to be selected but never both.

Relevant IRS page: https://www.irs.gov/publications/p502

Simplified Turbo Tax page: https://turbotax.intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9

Note that if the TCJA is allowed to expire the floor goes back to 10%

Related: www.irs.gov/publications/p502

3 votes

Tagged as Suggestion

Suggested 05 September 2023 by user tiger1972

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  • 05 September 2023 tiger1972 suggested this task

  • 06 September 2023 Kyle Nolan approved this task

  • avatar

    Yes - this would be huge. End of life (e.g. skilled nursing facility) care can easily cost 200k out of pocket per person. For many people, this cost is mostly tax deductable. I did not realize that the TCJA impacted the 7.5% medical expense rule - are you saying that the rate might go up to 10%?

    20 January