Repealing the increase in the threshold for deducting medical expenses, as a pending House bill would do, would give a costly, unnecessary tax break to high-income taxpayers.
Taxpayers may claim an itemized income tax deduction for extraordinary medical expenses that exceed a certain threshold. Health reform increased the threshold from 7.5 percent of adjusted gross income (AGI) to 10 percent starting in 2013 for most taxpayers. For taxpayers age 65 and over, the higher threshold will take effect in 2017.
The House will vote this week on a bill to repeal the increase. This would be a bad idea for several reasons: