This year we had a burglary. Google brings a result saying such losses are deductible if they meet various conditions including they exceed 10% of AGI.I have healthcare costs also and they also have the 10% of AGI limitation.For purposes of understanding, just say the Healthcare costs at 7.5% of AGI and the burglary loss of 7.5% of AGI.Do I get zero deductions? (neither exceeded the 10% level) or Do I get a 5% deduction since the combined items exceed AGI by 5%?Finally on the chance one can combine items that must exceed the 10% AGI yes, am I correct in believing all such items can be combined?Here is hoping I have no such losses in 2014!
Do I get zero deductions? (neither exceeded the 10% level) That's it. You have to look at each expense (medical, casualty loss) separately.--Peter
I have healthcare costs also and they also have the 10% of AGI limitation.If you're 65 or older by the end of the year, you get to stay at 7.5% of AGI for medical expenses. That break is good for 2013 through 2016. And only one spouse needs to be 65.--Peter
Thanks Peter - My post was not clear - I don't have medical deductions of 10%, rather I was trying to say that the medical deduction also must meet a 10% exclusion.You are a valued person on this board.
My post was not clear - I don't have medical deductions of 10%, rather I was trying to say that the medical deduction also must meet a 10% exclusion.That is what I understood you to be saying, and that 10% of AGI is generally correct.However, if you are 65 or older, you still get a 7.5% of AGI haircut from your medical expenses for 2013 and the next few years. I don't know if that applies to you, but I'm sure it will to some readers, and it might make a difference to someone.--Peter
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