Yes, Minnesota is taxing us, more..

[question everything]

The main item on our income tax return itemized deductions is Medical Deductions, caused by long term care premiums. The federal law always allowed to deduct the amount that exceeds 7.5% of Adjusted Gross Income. Not Minnesota. There it is 10%. I actually called the Dept. of Revenue and he confirmed it, adding that it was added last year but because the tax "reform" came so late in the year, they did not have time to address it.

They may in this year session which will probably not matter for many of us. Will probably the last year for itemized deductions..

Sigh..

[SWBTATTReg]

1. Just curious but I thought fed. % for medical deductions is now 10%...did I mishear?

Just a ?, when I recently did my tax returns, I noticed that the fed. tax deduction on schedule A is 10% (I don't have the form readily available to look at now). Perhaps I am incorrect in this assumption? Thanks.

[progree]

2. Well it gets f'ing confusing

For the federal -- there's one percentage for people over 65 and one for under 65....

I think it was 7.5% generally until the ACA -- raising the medical deduction threshold to 10% was a way to help pay for it (the ACA was revenue-neutral, so something has to pay for the subsidies, and this was one way).

For seniors, I think they left it at 7.5% (I know that was it for my 2016 taxes), but that was due to expire at the end of 2016, i.e. beginning in 2017, everyone was hit with the 10% threshold. Just looking at my 2016 Schedule A: seniors: 7.5%, others: 10% (On Edit: same is true on the 2014 and 2015 Schedule A's: seniors: 7.5%, others: 10%).

One surprising thing about the TCJA was that it cut it back to 7.5% for everybody for 2017 and 2018. It will be 10.0% in 2019 and thereafter.
https://www.hrblock.com/tax-center/irs/tax-reform/tax-cuts-and-jobs-act/

[SWBTATTReg]

3. Yeah, you're right, and I thank you for bringing this to our attention...

I will certainly look more closely at my 2017 Schedule A when it is prepared by my accountant later this year. Confusing as hell, isn't it? No wonder I can't stand doing taxes every year.

[SWBTATTReg]

4. Again, thanks for the helpful link, I linked into and copied...nt

God, once again, I hate doing taxes!

Ha! Thanks again and Have a nice day!!!

[progree]

5. I found the 2017 Schedule A -- it's 7.5% for everybody

https://www.irs.gov/pub/irs-pdf/f1040sa.pdf

Other than that, it looks a lot like 2016's Schedule A. (It's in 2018 that most of the TCJA stuff happens, like limiting the state and local tax deduction to $10,000, getting rid of theft and casualty deduction and the miscellaneous deductions, etc.)

[SWBTATTReg]

6. Thanks so much! God, I'm kicking myself, I could have done this too (link to the IRS, etc.

Sometimes I have a senior moment there...

Ha ha!! You have a great day!!

[progree]

7. Thanks, I'm glad it was useful

It took me quite awhile before it occurred to me it might be online

[question everything]

8. It is 7.5% for 2017. Look at Schedule A

It was going to change to 10% but they decided to leave it for 2017 and 2018. Will go back to 10% in 2019 (assuming our world still stands..)

[progree]

9. It's been 10% for several years for non-seniors and 7.5% for seniors

Like you say, it was going to revert to 10% for seniors in 2017 (and thus be 10% for everybody), but, as you say, (as one of the rare positive TCJA provisions) it will be 7.5% (for everybody) in 2017 and 2018, and 10% (for everybody) in 2019 and after.