GOP tax bill would eliminate medical expense deductions

[question everything]

The House Republican tax bill would eliminate the ability for individuals to deduct qualified medical expenses, a provision that could have major implications for households with extremely high health-care costs.

Under current law, the IRS allows individuals to deduct qualified medical expenses that exceed 10 percent of a person’s adjusted gross income for the year. The bill would repeal that itemized deduction, effective in 2018.

The cost to repeal the medical expense deduction is about $10 billion per year.

The IRS currently allows individuals to deduct preventative care, treatment, surgeries and dental and vision care as qualifying medical expenses.

The medical expense deduction can also be used for long-term care expenses for chronically ill patients.

The provision could be a flashpoint for Republicans, as the repeal could hit both patients themselves and their families, who sometimes help pay for care.

http://thehill.com/policy/finance/358437-gop-tax-bill-would-eliminate-medical-expense-deductions

[annabanana]

1. Yet another big hit on old people on fixed incomes..

I'm sure they're proud of themselves.

[BigmanPigman]

2. Yup, that was announced yesterday in the

Cut and Kill Bill. The average American may save a small amount of money in their taxes ($1,500-$500) but all the harmful loss of deductions will far outweigh any financial benefits they get. Student loans, state and city taxes (especially hitting the highly taxed blue states), mortgage caps, etc.are deductions that people can no longer claim. They want to bankrupt and kill everyone.

[marybourg]

3. People over 65 have a lower threshold for deductibility-7.5%.

I deducted $43,000 last year and will have ~$50,000 in deductions (meaning expenses paid partly out of investments sold, causing taxes to be paid on the gain). To have to pay tax on the sales, but not be able to deduct the medical expenses I'm paying for with the sales would cause a material negative change in my life. I will try to have it not affect my DH's care. But someday I'll probably need care, and I was hoping to be able to pay for that too.

[Wellstone ruled]

4. Been Bitching abuot this Stupid Rule

for quite some time. Saw two family Members g t totally smashed with these situations. Cancer is a total bitch and the aftermath for the Survivors families dealing with the final Medical bills and how to pay for them. Example being,pulling cash to pay for these Bills taken our of IRA's and 401's are subject to certain Tax consequences and certain Income calculations if one pulls over certain aggregate amounts.

Like a fore mentioned,two family members experienced this two years ago,long story short,it raises holy hell with ones deferred investment accounts. And this new proposed Bill will only jack this way out of shape.

[intheozone]

5. I think you are wrong on the 7.5%. Just checked today

and per IRS website, the 7.5% for over 65 ending on 1/1/17. As of that date, the deduction floor is 10% for every taxpayer regardless of age. You can check the IRS site, perhaps I misread it, but I don't think I did. So us old folks got screwed a little more, apparently without us even knowing. Dammit

[marybourg]

6. Well, if you read it there, it must be right.

I was just going by my recollection of doing my '16 taxes. Years ago, it was 7.5% for everyone; the most recent tax "cut" upped it to 10% for under 65's.

And don't forget that the elderly used to get larger personal exemptions, on the theory that their cost of living increases with age and disability. Now that's lost along with everyone's loss of personal exemptions.

There used to be policies behind tax laws. Encourage education, homeownership, help the elderly, disabled, etc. Now it's just stuff the pockets of the rich.