Can I deduct medical expenses on Arizona state income tax forms?

Forum|Forum|6 years ago
June 1, 2019
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Best answer by DanielV01

Yes, provided you are itemizing tax deductions on your Arizona return. While Medical expenses must reach 7.5% of your income to be deductible (as part of itemized deductions) on your Federal return, medical expenses are 100% deductible in Arizona, provided that you itemize your Arizona deductions.

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clemcat1

URGENT:

I prepared my AZ return using Turbotax. However, even though I said I wanted to itemize for AZ regarding the medical and charitable contributions, the final form did not show anything for my listed medical expenses in 2023. Is there a flaw in the program for AZ state filing documents within Turbotax? I looked at last year's return and saw that I did not receive anything on medical then either.

Please advise URGENTLY. Tax day is tomorrow, 4/15 and I need to get this filed.

Thanks,

Cathy

az_cactus_hugr

So why is the TT software not producing the 140 Schedule A so that I can deduct those medical expenses?? I answered yes when it asked if I wanted to itemize for AZ, and also completed the Schedule A itemized deductions for the federal (even though I used the standard deduction). That should have picked up the medical expenses! But, it did not. There is a flaw in the software. I will need to file an amended return at some point to correct this for 2024, 2023 and possible earlier years as well.

When I finished entering all details of medical expenses, TT asked me if all of those expenses were paid from my HSA/Cafeteria plan. I chose yes, because I have a pre-tax HSA contribution managed by my employer, which means it's a Cafeteria plan governed accordingly.

I believe that's why it's not pulling into my AZ State plan even though I chose to deduct... because AZ140 clearly states you cannot deduct any amounts paid from a Cafeteria plan including premiums and "other expenses". Therefore, only out of pocket expenses not paid using my HSA will count.

If your case is different, you may need to navigate back to federal, find the medical expense worksheet, and use it to copy/past the same information into the AZ form.

ad7gu

turbotax filled out the az form 140. is this the itemized deduction form? if so, what line does my medical deduction show up on. if not, what is the form number for the itemized deduction?

mglauner

@ad7gu Make sure you entered your Medical Expenses in your Federal Return. Then in the Arizona return, as you navigate through it, you will see a screen headed "Itemize Deductions". Answer "yes" to the question of "Do you want to itemize Arizona deductions?" The next screen is Medical and Dental Expenses where you can enter the net expenses.

This creates a Schedule A in your Arizona return.

Click this link for more info on Arizona Itemized Deductions.