Most taxpayers are aware that they can claim a medical and/or dental expense on their
Federal Income Tax Return if they meet certain eligibility requirements. Eligibility for the deduction requires (i) the taxpayer to itemize their
income tax deductions (medical expenses, charitable deductions, certain taxes paid and home-related costs) and not claim a standard deduction (itemized expenses must exceed the standard deduction amount); and (ii) medical costs that exceed a percentage of the taxpayer’s adjusted gross income (“AGI”).
In tax year 2016, the medical expense deduction is available to taxpayers under age 65 who have medical costs that exceed ten (10%) percent of their AGI. Taxpayers over age 65 are eligible to utilize the medical expense deduction if their medical costs exceed seven and one-half (7.5%) percent of their AGI.
However, 2016 is the last tax year that the lower percentage will be available to taxpayers over the age of
65 years. Beginning on January 1, 2017, unless legislation is passed, the percentage will revert back to ten (10%) percent for all taxpayers.
