Medical Itemized Deductions Limited

The itemized deduction for medical expenses are limited in the following manner:

AGI Threshold - The AGI threshold percentage for claiming medical expenses on a taxpayer’s Schedule A is increased from 7.5% to 10%, which is the same as the current threshold percentage for alternative minimum tax (AMT) purposes.

Delayed Implementation for Seniors - Individuals (and their spouses) age 65 (before close of year) and older will continue to use the 7.5% rate though 2016.

AMT & Regular Tax AGI Limit Become the Same
The Medical AGI Threshold for AMT is also 10%. Thus, with the implementation of the 10% threshold for regular tax, there will no longer be a medical adjustment for AMT. However, through 2016, seniors with medical expenses who are subject to AMT will have an AMT medical adjustment.