The AGI floor beneath Medical Expenses will be raised in 2017 – which is going to affect how you file. This could mean the following for you:
- You may lose your medical expense deduction
- You may be forced to take the standard deduction
- You may need to employ a bunching strategy for 2016-2017 expenses
Previously, medical expenses that exceeded 7.5% of your adjusted gross income were deductible if you itemized. This percentage was raised to 10% in 2012 when the Affordable Care Act went into effect, however it was decided that the raise would be postponed for seniors until 2017.
There’s a lot to think about this coming tax year, and Accounting Today has done a great job covering how the AGI floor raise will affect seniors. We highly recommend reading this Accounting Today article: How Seniors Can Cope with the Higher Post-2016 AGI Floor Beneath Medical Expenses
As always, we are here to answer questions and help you make the right decisions to reduce your tax bill. Give us a call for questions or to schedule your tax appointment for 2017.