In this episode, Dr. Friday discusses the challenges of deducting medical expenses. She explains how the IRS subtracts 7.5% of your adjusted gross income from medical expenses, making it harder to itemize unless you have significant costs. Dr. Friday also highlights which medical expenses, like long-term care, can be deducted and offers insight into whether itemizing is worth it for most taxpayers.
Transcript:
G’day I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Deducting your medical expenses. Now, this is not an easy thing to do. It’s not so much that you can’t track it, but keep in mind, first and foremost, they’re going to take 7.5% of your adjusted gross income. So, if you make $100,000, $7,500 of it is going to be immediately off the top of your medical. Then you still have to itemize, right? Which means, if you’re a married couple, that’s almost $29,000. So you’re losing $7,000, maybe you spent $10,000 in medical, so you’ll get a few dollars. But will it kick you over the top to actually meet itemizing? You can take off long-term care and some other things, but it’s really difficult to itemize medical.
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