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January 15, 2021
Question

Deductions

  • January 15, 2021
  • 1 reply
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 I recently paid for a $2,000 surgery that exceeds my AGI. Would I be able to deduct it? 

1 reply

VolvoGirl
Employee
January 15, 2021

Yes if all your itemized deductions are more than the Standard Deduction.  You have to upgrade to Deluxe or higher to fill out schedule A for itemized deductions.   And you do not get all your deductions back.  Deductions only reduce your income so you get taxed on a lower amount.  If your AGI is less than 2,000 you won't pay any tax so deductions won't be needed.

 

You can only deduct the amount of unreimbursed Medical Expenses you actually paid OVER 7.5% of your AGI. So it might take a lot to deduct any. And then the total of ALL your itemized deductions has to be more than the standard deduction to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction).

 

For 2020 the standard deduction amounts are:

Single $12,400 (+ $1650 65 or older)

Married Filing Separate $12,400 (+ $1300 if 65 or older)

Married Filing Jointly $24,800 (+ $1300 for each spouse 65 or older)

Head of Household $18,650 (+ $1650 for 65 or older)