Question

Medical expenses

Forum|Forum|2 years ago
January 20, 2024
1 reply
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I took the standard deduction but New Mexico lets you deduct medical expenses up to 2800 if you're over 65. Why won't Turbotax let me do that?

B

Bsch4477

Employee

Would that deduction result in a greater itemized deduction than the standard deduction for your state?

R

rrsheriff1Author

I don't think so

J

JohnW152

If you're eligible for this tax benefit and you've entered your information correctly in TurboTax, you may be looking in the wrong place on your return. You wouldn't be seeing this as a deduction, but as a refundable credit on your state return.

A refundable tax credit is treated as a payment of tax you made during the year. When your total of refundable credits is larger than the tax you owe, the government sends you a tax refund for the difference.

According to the Instructions for New Mexico Form 2023 PIT-RC:

If you or your spouse are 65 years of age or older, and you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2023, you may claim a tax credit of $2,800. The medical care expenses can be for the care of any combination of you, your spouse, or dependents.

The credit is claimed on line 23 of Form PIT-RC, then carried over to Form PIT-1, line 24.

@rrsheriff1