Your Tax Question - 080

Dear John,  When we were talking the other day about some of the things that are changing with the tax code, you had mentioned something about the Medical Expenses going away.  When does this happen?  Thanks, Hank
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Hi Hank,


No, the medical deduction is not going away, it is just being increased from 7.5% of your AGI to 10% of your AGI.  This is a deduction which is taken on your Schedule A deductions if your qualifying medical expenses presently exceed 7.5% of your Adjusted Gross Income but beginning in 2012 this deduction will not be allowed until your AGI reaches 10%.  In other words you have to spend more on medical expenses to be allowed this deduction.  So it is only going away for those who usually spend a little more than 7.5% to a little less than 10% of their AGI.  


Hope this clarifies things for you.


Thanks,
John


PS.  One of the things that is new this year for 2011 is the allowed medical expenses for breast pumps and lactation expenses.  It's about time in my opinion since sexual reassignment surgery has been allowed for years.