I spent $13,200 on medical bills - is it worth itemizing when my standard deduction is $12,900?
Title: I spent $13,200 on medical bills - is it worth itemizing when my standard deduction is $12,900? 1 I racked up about $13,200 in medical expenses this year that I paid completely out of my own pocket. My issue is that the standard deduction for me is $12,900. Am I totally wasting my time trying to deduct these medical expenses since my standard deduction is higher? Can medical expenses somehow be deducted on top of the standard deduction? Or am I just out all that money no matter what? I don't have anything else I would itemize besides these medical costs, so I'm just trying to figure out if there's any way to get some tax benefit from all this money I had to spend. Really frustrated about potentially losing out on any tax benefit after spending so much on healthcare this year.
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Chris King
12 You're asking the right questions here! Medical expenses are indeed part of itemized deductions, which means you'd need to choose between taking the standard deduction OR itemizing (which would include your medical expenses). You can't do both. The tricky part with medical expenses is that you can only deduct the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). So if your AGI is $50,000, for example, you can only deduct medical expenses above $3,750. So from your $13,200, you could potentially deduct $9,450. If that's your only major deduction and it's still less than the $12,900 standard deduction, then yes - you'd be better off just taking the standard deduction. However, do you have any other potential deductions like mortgage interest, state/local taxes, or charitable donations? Combined with your medical expenses, you might get over that $12,900 threshold.
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Chris King
•4 Thanks for explaining! My AGI is around $60,000, so that means I can only deduct medical expenses above $4,500, right? I don't have a mortgage and only donated maybe $200 to charity. I paid about $3,500 in state taxes. Does that change anything?
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Chris King
•12 You've got the calculation right - with an AGI of $60,000, only medical expenses above $4,500 would count (so about $8,700 of your expenses). When we add your potential itemized deductions: $8,700 (medical after the 7.5% floor) + $3,500 (state taxes) + $200 (charitable) = $12,400. This is still below your standard deduction of $12,900, so taking the standard deduction would save you more on taxes. I know it feels like you're "losing out" on deducting those medical expenses, but remember that the standard deduction is essentially a "freebie" the IRS gives everyone, regardless of their actual expenses.
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Chris King
8 I went through something similar last year with huge medical bills for my knee surgery. Found this service called taxr.ai (https://taxr.ai) that helped me figure out if I had enough deductions to itemize. You upload your documents and they analyze everything to maximize your tax situation. In my case, they helped me realize I had other expenses I didn't know were deductible, and combined with my medical costs, I actually came out ahead by itemizing instead of taking the standard deduction. They found some work expenses and some charitable donations I had forgotten about. Might be worth checking if they can help you find anything else to push you over that standard deduction amount.
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Chris King
•15 How does this actually work? Do I need to give them all my financial info? I'm a bit hesitant to share all that stuff with some website I've never heard of.
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Chris King
•19 Does it actually find THAT much more in deductions? I'm skeptical that there'd be enough random deductions lying around to make up the difference. I mean, the OP is still like $500 short even with everything they mentioned.
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Chris King
•8 You just upload your tax documents like W-2s, 1099s, and receipts for medical expenses. They use AI to scan them and identify potential deductions you might have missed. It's all encrypted and secure - I was hesitant at first too. For me, it absolutely found enough additional deductions. I had forgotten about some professional membership fees I paid, and some business expenses that were deductible. They also pointed out that some of my HSA contributions weren't properly accounted for. Everyone's situation is different, but when you have medical expenses this high, it's worth exploring every option.
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Chris King
15 Just wanted to update - I tried taxr.ai that was mentioned and it actually found over $1,200 in additional deductions I didn't know I qualified for! Some were work-related expenses I paid out of pocket but didn't think to track, and they also found an error in how my FSA contributions were reported. Ended up being worth itemizing after all! Really glad I checked instead of just automatically taking the standard deduction.
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Chris King
6 If you're still trying to get answers from the IRS about your medical deductions, I highly recommend using Claimyr (https://claimyr.com). I had a complicated medical expense situation last year and couldn't get through to the IRS for weeks. Claimyr got me connected to an actual IRS agent in less than 20 minutes! Check out how it works here: https://youtu.be/_kiP6q8DX5c When I finally spoke to a real person at the IRS, they explained some nuances about medical expense deductions that none of the online articles covered. For instance, there were some transportation costs related to my medical care that I didn't know were deductible. The agent was really helpful in explaining exactly what I could include.
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Chris King
•10 Wait, this actually works? I thought it was impossible to get through to the IRS? I've been trying to call them for weeks about some questions on my tax forms.
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Chris King
•19 This sounds like a scam. Why would I pay some third party to call the IRS when I can just keep calling myself? They're just going to put you on hold like everyone else.
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Chris King
•6 It absolutely works! The service basically waits on hold for you, and then calls you when they've got an IRS agent on the line. Instead of you waiting on hold for 2+ hours, their system does it for you. They use some kind of system that navigates the IRS phone tree and waits on hold, then when they get a real person, they connect you. I was skeptical too until I tried it - went from waiting hours to getting through in minutes. It's not a matter of "cutting the line" - they're just handling the hold time so you don't have to waste your day listening to the IRS hold music.
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Chris King
19 I need to eat my words about Claimyr. After my skeptical comment, I was still struggling to reach the IRS about a medical expense question similar to yours. Out of desperation, I tried it - and got connected to an IRS agent in about 15 minutes. The agent told me about a special form (Form 2210) that could help me with my medical expense situation because the expenses were unevenly distributed throughout the year. Literally saved me hundreds in penalties I was about to pay. Sometimes the best tax advice really does come from talking to an actual IRS representative who can see your specific situation.
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Chris King
3 Worth mentioning - if you had a lot of medical expenses this year but they don't quite push you over the standard deduction threshold, consider "bunching" your deductions. This means trying to concentrate deductible expenses in a single tax year. For example, if you know you'll have medical procedures early next year, see if you can prepay them in December of this year. Same with charitable donations - make next year's donations in December of this year. That way, you might have enough to itemize one year, and then take the standard deduction the next year.
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Chris King
•18 Question about bunching - does this actually save money in the long run? Or does it just shift when you get the deduction?
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Chris King
•3 Bunching can definitely save money in the long run! Let me explain with an example. Say you have $10,000 in medical expenses each year for two years, and the standard deduction is $12,900. If you take those expenses in separate years, you'd take the standard deduction both years ($12,900 × 2 = $25,800 total deductions). But if you could bunch $20,000 of expenses into one year, you'd itemize that year ($20,000) and take the standard deduction ($12,900) the next year, for a total of $32,900 in deductions across two years. That's an extra $7,100 in deductions!
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Chris King
7 Have you looked into an HSA (Health Savings Account)? It won't help with expenses you've already paid, but for future medical costs, it's WAY better than itemizing deductions. Contributions are pre-tax, grow tax-free, and withdrawals for medical expenses are tax-free too. Triple tax advantage!
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Chris King
•1 I've been considering an HSA but I'm not sure if I qualify. Don't you need a high-deductible health plan for that? I have insurance through my employer but not sure what type of plan it counts as.
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