2016 Tax Planning

I heard changes are in store for seniors on the medical expense write-off.  Is this true?  Yes.  Beginning with 2017 returns due in 2018, the threshold for deducting medical costs on Schedule A jumps to 10% of adjusted gross income for taxpayers who are age 65 or older.  This higher floor, set as part of Obamacare, has applied to younger filers since 2013.  But older people got a four- year reprieve.  Seniors who think they will exceed or get close to this year’s 7.5% of AGI threshold should consider getting and paying for elective health procedures before year end.

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