Senators send letter calling for extension of lowered threshold for medical expense deduction
Earlier this week, US Senators Maria Cantwell, Kyrsten Sinema, Martha McSally, and Susan Collins sent a letter to Senate leadership calling for an extension of the reduced threshold for the medical expense deduction.
The medical expense deduction allows individuals with medical expenses greater than 7.5% of their adjusted gross income to deduct the expenses when filing their taxes. Without an extension of the 7.5% threshold in an end-of-year legislative package, that threshold will jump to 10%.
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The deduction provides financial relief for those with high medical costs such as seniors, individuals with serious medical conditions, or individuals with disabilities.
According to the letter, maintaining the 7.5% threshold will benefit 3.6 million taxpayers, including 1.4 million who are ages 65 and older. The letter also states that more than two-thirds of those taxpayers are in the middle 60% of the income distribution.
“This issue reflects strong bipartisan and bicameral consensus. None of us wants to see an increase in the tax burden for those with high medical expenses. This extension is low-cost but has an incredible high impact,” reads the letter.
Fifty organizations from the medical community sent letters to senators and representatives advocating for a permanent 7.5% threshold. The organizations that signed the letter include AARP, Alzheimer’s Association, American Heart Association, Children’s Cancer Cause, LeadingAge, Medicare Rights Center, National Center for Assisted Living, and the National Council on Aging.