A reduction in the medical expense deduction “floor” has been made permanent. The Consolidated Appropriations Act of 2021 was just passed by Congress to provide a variety of relief to Americans due to COVID-19. President Trump is expected to sign it soon. One provision involves medical expenses. Currently, for tax years beginning before Jan. 1, 2021, individuals can claim an itemized deduction for eligible unreimbursed medical expenses to the extent that such expenses exceeded 7.5% of AGI. However, the 7.5% floor was scheduled to be increased to 10% in 2021. The new law makes the 7.5% threshold permanent, applicable for tax years beginning after Dec. 31, 2020. Call or visit our website for more information! www.mjscpa.com/
