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What Do You Mean My Medical Bills Aren’t Tax Deductible!

Posted by Admin Posted on Oct 10 2016

Sometimes when sitting around the dining room table after paying a hefty hospital bill, people will say, “At least it is tax deductible” and then have a good laugh. 

 

Unfortunately medical bills don’t always come with a tax benefit.  First of all for most people, the only medical bills that can be deducted is the amount that exceeds 10% of their adjusted gross income (AGI) (unless they are 65 or older and then the limit is 7.5% of AGI for 2016).  That would take a large amount of medical bills for most people (but you should add them up to see if they will help).  The second problem is that since they’re taken as itemized deductions, many people don’t benefit because the standard deduction exceeds all of their itemized deductions. 

 

My advice to you is to not get sick so that you don’t need to pay a doctor, because the tax benefits just might not be there.