Bunching deductions means timing the payments between years to get the best tax deduction. Since 2016 is the last tax year that taxpayers age 65 or older can use the 7.5% of adjusted gross income (AGI) deduction floor, you may want to consider bunching medical deductions this year. Starting in 2017, the deduction floor for medical expenses for this age group rises to 10% of your AGI. Allowable expenses include long-term care premiums, prescription drugs, mileage or transportation costs, and home improvements that accommodate a disability or medical condition. Nondeductible items include funeral expenses, nutritional supplements, and nonprescription drugs. Contact us for assistance.
Do you need to bunch your medical deductions?
By Tami Benus|2016-12-06T14:11:02-06:00December 6th, 2016|Blog|