Medical and Dental Expenses
Ataxpayer who has qualified medical expenses may be able to deduct them as an itemized deduction. Medical expenses are subject to a 7.5% of adjusted gross income (AGI) limitation. The amount of the deduction for medical expenses will be limited to only the amount exceeding 7.5% of the taxpayer's AGI.
Medical insurance premiums (that are not already excluded from income) are deductible as medical expenses and are subject to the 7.5% AGI floor. Self-employed taxpayers with a net profit for the year may deduct the premiums paid for themselves, their spouse, and children under age 27 as an adjustment to income without itemizing (see Chapter 17).
Medical and dental expenses may be deducted without limit (see the “Qualified Medical Expenses” section later in this chapter for which expenses qualify). However, only those qualified expenses that exceed 7.5% of the taxpayer's AGI may be deducted.
Before calculating the limitation, the amount paid for medical expenses must first be reduced by any reimbursements from an insurance policy or other ...