Medical Expense Deduction

Definition

Section 213 allows an itemized deduction for qualifying medical and dental expenses for the taxpayer, spouse, and dependents that exceed 7.5 percent of AGI. The list of eligible expenses is broad and includes premiums, prescriptions, and certain transportation.

Examples

• A taxpayer with $80,000 AGI and $10,000 of medical expenses deducts $4,000 (the excess above the 7.5 percent floor).