What percentage of AGI do medical expenses need to exceed for deduction eligibility?

For medical expenses to be eligible for deduction, they must exceed a specific percentage of the taxpayer's adjusted gross income (AGI). The threshold for medical expenses is set at 7.5% of AGI. This means that taxpayers can only deduct the amount of their total medical expenses that is greater than this percentage.

For instance, if someone's AGI is $50,000, they can only deduct their medical expenses that exceed $3,750 (which is 7.5% of $50,000). This rule is crucial as it establishes a baseline that helps distinguish between routine expenses and those that may warrant a tax deduction due to their significant impact on a person's financial situation.

The 7.5% figure has been in effect as a consistent guideline and remains important for tax planning and understanding allowable deductions during tax filing.