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. The Tax Cuts and Jobs Act returns the deductible amount of out-of-pocket medical expenses to amounts exceeding 7.5% of Adjusted Gross Income (AGI). This change takes effect for tax years beginning after 12/31/2016. Enter unreimbursed medical expenses and after-tax premiums in the program and TaxAct will automatically calculate the amount deductible.
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:
The total of your itemized deductions is calculated on Schedule A, Line 18. 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.
Head of Household $18,000
Married, Filing Jointly $24,000
Married, Filing Separately $12,000
Qualifying Widow(er) $24,000