Why Are My Medical Expenses Not Showing After I Entered Them in the Software?
When using tax preparation software, you may notice that your entered medical expenses are not appearing in your itemized deductions. This is typically due to IRS rules requiring a minimum threshold for medical expense deductions.
Medical Expense Deduction Threshold
- Medical expenses are only deductible if they exceed 7.5% of your Adjusted Gross Income (AGI).
- AGI is reported on line 11 of Form 1040.
- For example, if your AGI is $100,000, your medical expenses must exceed $7,500 to qualify for a deduction.
- If your expenses are $5,000, they do not meet the threshold and will not be included in your itemized deductions.
How to Check Your Eligibility
- Review your Form 1040, line 11, to determine your AGI.
- Calculate 7.5% of your AGI.
- Compare your total unreimbursed medical expenses to this amount.
- If your expenses are below the threshold, they will not be deductible and will not appear in the software’s itemized deductions.
Important Notes
- Only unreimbursed medical expenses qualify for deduction.
- These expenses must be documented and supported by receipts or records.
- The deduction is claimed on Schedule A (Form 1040), line 4.
Source:
Instructions for Schedule A (Form 1040)
Publication 575
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.