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Tue Feb 25, 2020, 02:19 PM

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..


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Reply Got to love the IRS forms (Original post)
question everything Feb 2020 OP
progree Feb 2020 #1
question everything Mar 2020 #2

Response to question everything (Original post)

Tue Feb 25, 2020, 05:35 PM

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

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.

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Response to progree (Reply #1)

Sat Mar 7, 2020, 02:09 PM

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


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