Itemized State & Local Taxes, Medicare and Miscellaneous Deductions
Beginning Jan. 1, 2013, you can claim deductions for medical expenses not covered by your health insurance that exceed 10 percent of your adjusted gross income. There is a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and their spouses. If you or your spouses are 65 years or older or turned 65 during the tax year, you are allowed to deduct un-reimbursed medical care expenses that exceed 7.5% of your adjusted gross income. The threshold remains at 7.5% of AGI for those taxpayers until Dec. 31, 2016.
Tax Tips: If tax advantageous, the amount of medical expense, state & local taxes and miscellaneous deductions, you may expedite or defer them to 2017. Do not fall into the Alternative Minimum Tax (AMT) trap, because some of these are AMT preference and adjustment items. Note: The in coming Trump administration has a vowed to repeal AMT.