Tax Cut and Jobs Act (TCJA) | Medical Expenses Deduction | Lexington, KY Tax Attorney

Medical Expenses Deduction

The Tax Cut and Jobs Act (“TCJA”) is a significant overhaul of the Internal Revenue Code. The TCJA has a large overall impact on itemized deductions, as several itemized deductions have been modified. One such deduction is the medical expenses deduction.

Currently, people with high medical expenses can deduct the portion of those expenses that exceeds 10% of their income. For example, a couple with $50,000 in income and $10,000 in medical expenses can deduct $5,000 of those medical expenses.

The new law increases this to medical expenses that exceed 7.5% of income. In the example above, the couple would be able to deduct $6,250 of their expenses. Note that this part of the new law applies to medical expenses for 2017 and 2018.

For more information on the TCJA, visit our main informational page here. If you have questions or concerns about how you or you business’s tax situation is affected by the TCJA, call Gayheart & Campbell, PLLC at 859-276-6193 or request a consultation here.