Are Medical Expenses Tax Deductible in 2019?

As we navigate the complexities of tax laws, it's essential to understand what medical expenses are eligible for deduction on our federal form 1040. In this article, we'll delve into the details of medical expense deductions and how they apply to your individual situation.

What constitutes medical expenses?

Medical expenses encompass a wide range of treatments and services, including routine visits for medical, dental, and vision care, as well as specialist care. This also includes prescription medications, follow-up visits, and other treatments ordered by your doctor. However, it's crucial to note that only medical expenses related to a diagnosed disease or condition are eligible for deduction.

Claiming medical expense deductions

To claim medical expense deductions, you must itemize your deductions on Schedule A (available as a PDF) of your federal form 1040. For the 2019 tax year, the floor is set at 10% of your Adjusted Gross Income (AGI). This means that you can only deduct expenses that exceed this threshold.

For example, let's say your AGI is $40,000 and your medical expenses total $5,000. In this scenario, you would be able to claim a deduction for the amount exceeding 10% of your AGI ($4,000). This reduces the number of medical expenses eligible for deduction.

Changes in the Tax Cuts and Jobs Act (TCJA)

The TCJA introduced significant changes to tax laws, including the reinstatement of the 7.5% floor for medical expense deductions. For tax years 2018 and earlier, the floor was set at 7.5%, but it increased to 10% in 2019.

What does this mean for you?

If your AGI is $40,000 and your medical expenses are $5,000, you can claim a deduction of $2,000 (or $5,000 minus the floor) for the 2018 tax year. For the 2019 tax year, however, the floor increases to 10%, resulting in fewer eligible deductions.

To find your AGI on the new form 1040, look at line 7 on page two. You can also consult our guide to understanding the new 1040 and schedules for more information.

In conclusion, medical expenses are tax-deductible only if they relate to a diagnosed disease or condition and exceed 10% of your Adjusted Gross Income. By understanding these rules and how they apply to your individual situation, you can make informed decisions about claiming deductions on your federal form 1040.

Are medical expenses tax deductible in 2019