“After 20 years of preparing returns, what I have found is that most people who have high enough medical expenses to qualify are elderly,” said Allen L. Beatty, an enrolled agent with Apple Tax Services in Jackson, OH. “Generally, elderly people who own a home have paid it off in full for years and the largest item I usually find in itemized deductions is the home mortgage interest. This problem is compounded even more because once you are 65 you are entitled to an extra standard deduction of $1,450. My experience has been that medical deductions can seldom be claimed.”
Beatty went on to point out that because of the Affordable Care Act, the formula to beat the AGI is 10 percent in 2013. “Thus, for returns being prepared one year from now you must exceed 10 percent of AGI, as the first 10 percent of AGI will not count,” Beatty explains.