Writeoffs for medical expenses are being trimmed for some taxpayers. For 2012 (the tax return due this coming April), if you itemize deductions on Schedule A of a 1040, you can deduct eligible medical expenses to the extent they exceed 7.5% of your adjusted gross income (AGI).** But to help pay for ObamaCare, beginning in 2013 taxpayers younger than 65 will be able to deduct these expenses only to the extent they exceed 10% of AGI.**
As a result of the Affordable Care Act, tax filers now may only deduct medical expenses that exceed 10% of their adjusted gross income. Previously, the threshold was 7.5% of AGI.
I haven’t had life insurance for 10 years. I qualified for a subsidy and pay under $50/month with a $500 deductible. Thank goodness, because I got sick–like two-months-leave sick–a couple of months in. Instead of owing thousands of dollars for my care, I owe a few hundred, and the rest of the year is pretty well covered.
If it didn’t actually save my life, it came damn close.
And I’m jolly well pissed off about that. That will affect my taxes – 7.5% for a single person is a good chunk of change. If there were two incomes in my house, it would be easier to work with.
Because Tennessee didn’t expand Tenncare insurance is still far too expensive for my 25 year old daughter, even with subsidies, even just the catastrophic coverage. She’s taking the fine this year and I really hate it because she desperately needs real medical coverage. Paying for catastrophic care doesn’t help a bit when what she needs is mental health coverage.
I would be in the same boat if I didn’t qualify for TANF, but it’s about to run out and I don’t know what I’ll do then. I’m still waiting for SSI for bipolar disorder/PTSD/phobia disorder. I was approved by TANF for a work waiver so it’s likely I WILL receive SSI. I guess with that I’ll get the same Tenncare coverage? I have no idea.