Tag: loss of medical deducations

‘Very, very scary’: 8.8 million Americans face big tax hike if Republicans scrap the medical deduction

The following article by Heather Long was posted on the Washington Post website December 10, 2017:

Randy Sherfy has lived in a traumatic care facility since a driver hit him when he was 41. Cecilia “Sis” Tunnell has Alzheimer’s and requires intensive care. Both would end up paying thousands of dollars more in taxes if the medical deduction goes away, their families say. (Sherfy photo courtesy of Joe Sherfy; Tunnell photo courtesy of Mary Pagel).

Anne Hammer is one of millions of elderly Americans who could face a substantial tax hike in 2018 depending on the final negotiations over the Republican tax bill.

In her retirement community in Chestertown, Md., it’s the big topic of conversation.

Hammer is 71. Like many seniors, her medical bills are piling up. There are doctor visits, insurance premiums, drugs, a colonoscopy, a heart scan, an unexpected trip to the emergency room that lasted three days, ongoing monitoring for breast and ovarian cancer that run in her family and the costs of medical staff at her retirement community. Her out-of-pocket medical expenses vary, but she estimates they are about $20,000 a year.

Under current law, she can take a big medical deduction on her taxes. Last year, she was able to reduce her total taxable income by $16,000 because of the medical deduction alone, saving her over $3,000 on her tax bill. Continue reading “‘Very, very scary’: 8.8 million Americans face big tax hike if Republicans scrap the medical deduction”