Tax Medical Floor

Public law 116 94 division q section 103 changed the medical deduction floor percentage from 10 to 7 5 for 2020.

Tax medical floor. After president trump officially signed tax reform into law the floor for medical expense deductions went down to pre affordable care act aca levels for 2017 and 2018. We changed the percentage in the text on line 1 of the step 4 b deductions worksheet on page 3 of the 2020 form w 4 to 7 5. What will the medical expense deduction be in 2019 and 2020. The 7 5 floor is back in place for the tax years 2017 and 2018.

From 2019 which will be reflected in your tax return. The deduction for medical expenses is one of the few tax breaks currently available to individuals due. M is for medical expenses. Medical tax deductions don t work like other tax deductions.

We also made one minor editorial clarification on line 4 of that worksheet changing from schedule 1 to from part ii of schedule 1. There s a ceiling where you can only deduct qualified medical expenses if they total more than 7 5 of your adjusted gross income for the years 2017 and 2018. For 2019 and 2020 tax returns the medical expense deduction floor remains at 7 5 due to an extension by the taxpayer certainty and disaster tax relief act. The tax cuts and jobs acts tcja preserved the deduction for medical expenses and changes the floor to 7 5 in 2017 and 2018.

Under the tcja the medical expense deduction survived but there was a catch. If you can clear a few hurdles high health care costs might help lower your 2019 tax bill. The new old medical expenses deduction floor may be back. Under the tcja the medical expense deduction remains in place but there s a catch.

The medical expense deduction floor changed for 2018. While the 7 5 floor returned for the tax years 2017. The taxpayer certainty and disaster tax relief act.