If you itemize your medical deductions, your qualified medical expenses in tax year 2012 are more valuable and deductible than those incurred in tax year 2013. Medical deductions will be more difficult to claim as itemized medical deductions in tax year 2013.
Specifically, for medical expenses to be claimed for tax year 2012, your qualified medical expenses must exceed 7.5% of your adjusted gross income before they can be claimed as an itemized deduction. In tax year 2013, your qualified medical expenses must be more than 10% of your adjusted gross income. Therefore, accelerating your out of pocket qualified medical expenses before December 31, 2012, may ensure that you meet the criteria for this year’s itemized deduction that you may otherwise be ineligible for in tax year 2013.
You want all the deductions you can get because that translates in to lower taxes and helps you to avoid tax problems. If you’ve done all you can to minimize your tax bill and you still can’t pay it, call Montgomery & Wetenkamp at (800) 454-7043 to get help from an experienced tax attorney.