Posted on Dec 29, 2016
Bunching deductions means timing the payments between years to get the best tax deduction. Since 2016 is the last tax year that taxpayers age 65 or older can use the 7.5% of adjusted gross income (AGI) deduction floor, you may want to consider bunching medical deductions this year. Starting in 2017, the deduction floor for medical expenses for this age group rises to 10% of your AGI. Allowable expenses include long-term care premiums, prescription drugs, mileage or transportation costs, and home improvements that accommodate a disability or medical condition. Nondeductible items include funeral expenses, nutritional supplements, and nonprescription drugs. Contact us for assistance.
Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter.