Medical and Dental Expenses

The Tax Cuts and Jobs Act returns the deductible amount of out-of-pocket medical expenses up to amounts exceeding 7.5% of adjusted gross income. This change is in effect for tax years 2017 through 2020.

Insurance premiums paid with after-tax dollars and unreimbursed medical expenses can be entered on federal Schedule A, Line 1 or in the itemized deduction section of the TaxAct program.

When you enter unreimbursed medical expenses and after-tax premiums in the program, TaxAct will automatically calculate the amount deductible.

Go to IRS Publication 502 to review what medical expenses are allowable on IRS Schedule A.

Make sure to enter medical expenses in the correct year:

Include medical expenses paid by cash or check in the year in which you paid the expenses, not the year when the services were provided (if the two are different). If you used a credit card to pay expenses, include the medical expenses in the year the charges were made, not the year you paid the credit card company (if the two are different).

To enter your medical and dental expenses in TaxAct:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu 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

Figuring out total itemized deductions versus standard deduction:

The total of your itemized deductions is calculated on Schedule A, Line 17. 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 IRS Form 1040 within the tax and credits section of the return.

Single $12,200
Head of Household $18,350
Married, Filing Jointly $24,000
Married, Filing Separately $12,200
Qualifying Widow(er) $24,400