Proseries 1040 Schedule A is using a 7.5% exclusion for medical expenses but the IRS website says 10% is the proper rate for 2017. Is this a software error?

[Just-Lisa-Now- · Accepted solution]

They new tax reform changed that, IRS must not have their pages updated completely yet.    We get the 7.5% for 2017 and 2018, then it changes.  The program is correct.

The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income for 2017 and 2018. Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.

Your adjusted gross income (AGI) is your taxable income minus any adjustments to income such as deductions, contributions to a traditional IRA and student loan interest.

For example, if you have a modified adjusted gross income of $45,000 and $5,475 of medical expenses, you would multiply $45,000 by 0.075 (7.5 percent) to find that only expenses exceeding $3,375 can be deducted. This leaves you with a medical expense deduction of $2,100 (5,475 - 3,375).

[mojocpa]

　

　From the 2017 Sch A instructions:

Medical expense deduction. The 7.5% adjusted gross income (AGI) threshold for deducting medical and dental expen-ses has been extended through 2018 for all taxpayers.

[tembrooke]

Great! I was looking at Pub 502, which still shows the old information.

[janine]

Instructions on form 5329 states

05 Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 7.5% of your adjusted gross income (AGI) for the year.

so it is anything above 7.5%