Find Senior Care (City or Zip)
Join Now Log In
G
Genylee Asked February 2016

My mom had approx. $25,000 out of pocket med expense in 2015. Can she claim med.exp?

My mom had approx. $25,000 out of pocket med expense in 2015.  She is 84 & rec. approx. $1750 in SS and retirement. Can she claim med.exp? She had already done her taxes through AARP volunteers, & they told her she will receive a refund of $27. What happens to her our of pocket expense?


 


 

JessieBelle Feb 2016
We should have asked how much income tax did she pay, which is more meaningful than how much the refund was. If her total monthly income was only $1750, the numbers don't make sense to me.

JessieBelle Feb 2016
There must have been a lot of extra income. Medicare is exempt from taxes for low-income seniors. Of course, they wouldn't cut tax on it, so the tax refund lets us know she has other income. The OOP expense is deductible if your mother itemizes. Medical expenses that are above a certain percentage of the income can be deducted.

ADVERTISEMENT


GardenArtist Feb 2016
Did she have any other income, such as investment income?

A refund of $27 doesn't make sense unless she had a lot of other income to offset the medical expenses.

Did you check the return to make sure a Schedule A was prepared?

freqflyer Feb 2016
Genylee, my gosh $25k sounds terribly high. What happened? Or did Mom not have a secondary insurance to help pick up and pay what Medicare would not?

CarlaCB Feb 2016
She can claim medical expense deductions on amounts exceeding 7.5% of her annual income. But I'm surprised she is paying any taxes at all on such a low income, and the deductions can't reduce her income tax below zero.

ADVERTISEMENT

Ask a Question

Subscribe to
Our Newsletter