There seems to be a lot of confusion regarding this subject, so here are the very simple rules for your federal tax return.
1 Add up all your medical costs including health insurance premiums, Medicare included.
2 Compute 7.5% of your adjusted gross income (the last amount on page 1 of your 1040).
3 Subtract 2 from 1. What's left is your deduction.
That's it. There are no limits to this deduction as some seem to think, just a "floor" or 7.5% of AGI. This "floor" is changing to 10% in 2013, with this exception. During the years 2013 to 2016 the 7.5% will still apply if you are 65 or older during any part of the year.
Any questions, please post them and I will do my best to give you a useful reply.
Edited on March 26, 2012 by toddtee
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