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How Does the Medical Expense Deduction Work?

** This article has been revised from its original version which was published on February 20, 2018.

It is no secret that many senior citizens and individuals with disabilities face significant medical costs each year, including the cost of long-term care.

These costs are often financially crippling for many seniors, individuals with special needs, and their families. To offset high medical expenses, many taxpayers take advantage of the Medical Expense Deduction on their federal individual income tax returns.

The Medical Expense Deduction allows people with high medical costs to reduce their taxable income by subtracting some out-of-pocket medical expenses, including qualified long-term care expenses. The deduction is subject to what’s known as a “floor,” which is a percentage of the adjusted gross income that must be subtracted from the itemized amount to determine the deduction.

For example, under current law, a taxpayer whose adjusted gross income was $50,000 in 2023 can only deduct the unreimbursed medical expenses paid in 2023 that exceeds $3,750, which is 7.5% of the $50,000 adjusted gross income.

Elder Law Attorneys Fought to Keep the Medical Expense Deduction

During the process of enacting the Tax Cuts and Jobs Act of 2017, Congress considered removing the Medical Expense Deduction entirely but was ultimately persuaded from doing so thanks in large part to the advocacy of Elder Law attorneys at the National Academy of Elder Law Attorneys (NAELA). The attorneys at Russo Law Group, P.C. are certified elder law attorneys who advocate for seniors and the disabled. From elder care for dementia to senior fraud or nursing home abuse, we know the challenges of the aging population and strive to protect you.

In 2023, the medical expense deduction floor remains 7.5% of adjusted gross income for all taxpayers, regardless of age. The continuation of the Medical Expense Deduction was a major win for the millions of senior citizens and individuals with special needs who rely on this deduction to offset some of the high costs of long-term care.

Estate Planning for Seniors and Individuals with Disabilities

When implementing an estate plan that integrates elder law services as you age, it’s important to consult with and retain experienced attorneys who fight for the rights of seniors and the disabled, protect your home and assets, prepare you for long-term care, and ensure you receive tax breaks for medical expenses.

The knowledgeable and compassionate team at Russo Law Group, P.C., provides professional services and advice at every stage of life, from growing families to retirees. Some families simultaneously provide for young children with special needs and aging parents. Take advantage of our comprehensive website as well as our free seminars and webinars to learn more about how Russo Law Group, P.C. provides peace of mind. Please contact our law firm to speak with one of our experienced elder law and estate planning attorneys today at 1 (800) 680-1717.

Russo Law Group, P.C.
100 Quentin Roosevelt Blvd., Suite 102
Garden City, NY 11530

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