Insurance premiums that are paid with after-tax dollars and unreimbursed medical expenses can be entered on Line 1 of federal Schedule A or in the itemized deduction section of the program. Beginning Jan. 1, 2013, unreimbursed medical expenses need to exceed 10% of Adjusted Gross Income (AGI) to be deductible on Schedule A. Enter unreimbursed medical expenses and after-tax premiums in the program and TaxACT will automatically calculate the amount deductible.

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 unreimbursed 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.

You may include medical expenses paid by cash, check, or credit card for the year in which you paid the expense, not for the year when the service was provided. If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged.

Please see IRS Publication 502 to review what medical expenses are includable on federal Schedule A and which are not.

To enter your medical and dental expenses in TaxACT:

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Itemized or Standard Deductions to expand the category and then click Medical and dental expenses
  3. The program will proceed with the interview questions for you to enter or review the appropriate information

The total of your itemized deductions is reported on Schedule A, Line 29. The TaxACT program will use the higher of your itemized deductions or the standard deduction for your filing status to maximize the tax benefit to you. The standard deduction for each filing status is listed on the left side of Form 1040 within the tax and credits section of the return.

  • Single $6,200
  • Head of Household $9,100
  • Married, Filing Jointly $12,400
  • Married, Filing Separately $6,200
  • Qualifying Widow(er) $12,400

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