Health Care Deductions
Last year’s tax bill may have reduced your deduction for medical costs, including health insurance for 2014. We will see very few deductions available for medical costs now unless you have substantial bills. The amount of your medical expenses in most cases must now be more than 10% of your income before we can deduct anything, so weigh carefully whether to go through the trouble of summarizing these costs. Taxpayers age 65 or older may continue to deduct total medical expenses that exceed 7.5% of adjusted gross income through 2016. New Jersey residents can deduct certain medical expenses in excess of 2% of gross income. If you are self-employed or live in New Jersey, we still need to know how much you paid for health insurance.
For more information, call us at (215) 354-0500.