Personal Finance and Investing

question everything

(48,965 posts) Tue Feb 25, 2020, 01:19 PM Feb 2020

Got to love the IRS forms

As I have posted here before, I keep a spreadsheet throughout the year, for estimated taxes, or if we generate capital gain or loss.

I thought I was ready, has all the up-to-date forms and spent several hours trying to understand TurboTax medical deductions (had many in 2019, mostly dental work).

I finally talked to an advisor who notified me that... in contrast to my Schedule A instructions from Dec. 6, 2019, stating that only expenses that exceed 10% are allowed, the new instructions from Jan 6 state that... cap was dropped to 7.5%.

At least I think that I am now ready to file..

2 replies

= new reply since forum marked as read

Highlight:

Got to love the IRS forms (Original Post) question everything Feb 2020 OP

Yup, the medical deduction floor was changed on Dec 20, 2019 by the signing of the SECURE Act progree Feb 2020 #1

Thanks. Am already working on the 2020 return - first estimated payment next month.. question everything Mar 2020 #2

progree

(11,463 posts)

1. Yup, the medical deduction floor was changed on Dec 20, 2019 by the signing of the SECURE Act

Reply to question everything (Original post)

Tue Feb 25, 2020, 04:35 PM

Feb 2020

https://www.forbes.com/sites/kellyphillipserb/2019/12/20/congress-passes-bill-chock-full-of-extenders-healthcare-tax-repeal--retirement-plan-tweaks/#13fcf05940e4

The medical expenses deduction 7.5% floor has returned (it was previously bumped to 10%) for 2019 and 2020.

Meaning that medical expenses up to 7.5% of AGI don't count (GRRRR), it's only medical expenses above 7.5% of AGI that may be deducted (assuming one's total itemized deductions exceed the standard deduction threshholds of $12,200 single, $24,400 MFJ + some extra for age 65 and older, -- these are 2019 tax year numbers ).

In 2021 and after, the floor will be 10% again.

question everything

(48,965 posts)

2. Thanks. Am already working on the 2020 return - first estimated payment next month..

Reply to progree (Reply #1)

Sat Mar 7, 2020, 01:09 PM

Mar 2020

Reply to this discussion