2013 Medical Exclusion Amount

[Burke]

In 2013, the medical exclusion amount is going to 10% from 7.5% for persons under age 65. So for a MFJ return where one spouse is 65 or over and one is not, am assuming either one will control the allowable percentage?

[ChEAr$]

In 2013, the medical exclusion amount is going to 10% from 7.5% for persons under age 65. So for a MFJ return where one spouse is 65 or over and one is not, am assuming either one will control the allowable percentage?

I agree. Unless IRS explained by saying in this case the percentage should be 8.75% (prorated 5% increase)

[Lion]

7.5% if at least one spouse is 65 or over. I paid attention to this, because I'm 65 and married a younger man! But, just until 2014, I think, or 2016?

[Roland Slugg]

But, just until 2014, I think, or 2016?

It's through 2016.

[Burke]

It's through 2016.

And then what? It just fades away.....?

[Bees Knees]

From TTB What's New In-Depth Edition, page 7-11:

Effective for taxable years beginning after December 31,
2012, the new law increases the threshold for the itemized
deduction for unreimbursed medical expenses from 7.5%
of AGI to 10% of AGI for regular income tax purposes.
However, for the years 2013, 2014, 2015, and 2016, if either
the taxpayer or the taxpayer’s spouse turns age 65 before
the end of the taxable year, the increased threshold does
not apply and the threshold remains at 7.5% of AGI. The
new law does not change the AMT treatment of the itemized
deduction for medical expenses.

So in other words, the new AGI limitation is 10%, but if one spouse is age 65 or older by the end of tax years 2013 through 2016, then the limit is still 7.5%. After that, everyone, including those age 65 and older are subject to the 10% AGI limitation.