Tax Prep & Planning

Can You Claim Medical Expenses on Your 2019 Tax Return?

While Tax Day is long gone this year, taxes should be on your mind year round. Why? One reason is collecting appropriate documentation to maximize itemized deductions – particularly for medical expenses.

Medical Expense Deduction Prior to Tax Reform

Prior to tax reform, here were the rules surrounding medical expense deductions:

If you itemized your tax deductions, you deduct qualified out-of-pocket medical expenses more than 10% of your adjusted gross income (AGI) for the year. You could deduct medical expenses paid only within the tax year.

This included expenses paid for diagnosis, cure, mitigation, treatment, or prevention of disease, or including dental costs. The costs must have been incurred for the taxpayer, the taxpayer’s spouse, or dependent.

The Medical Expense Deduction After Tax Reform

Due to tax reform – formally called Tax Cuts and Jobs Acts (TCJA) – the rules surrounding the medical expense deduction changed.

First, you might wonder, “Can I still deduct medical expenses on my tax return?”

The short answer is yes. But for your next year’s return, it goes back to the previous law.

Here’s a brief explanation. …

Tax reform changed the floor to 7.5% for tax years 2017 and 2018, so your  two most recent tax returns (for 2018 and 2017) you could deduct this amount.

But for next, year the floor will return to 10%.

With medical expense deduction tax reform, some taxpayers who previously itemized will be better off taking the larger standard deduction, including taxpayers who can deduct medical expenses. If you have questions about this deduction or others, gain the expertise of a tax professional at Block Advisors. Our advisors are available year-round to assist you in tax planning and forecasting.

Find your advisor match.

Insights Icon

Get Matched Today

Find Your Advisor