There are a few caveats with the medical expense deduction.
* It's only a deduction for income tax. FSAs let you save on FICA as well.
* It's an itemized deduction. You only benefit after your total itemized deductions exceed the standard deduction. Fewer people are itemizing nowadays because the federal standard deduction is large.
* There's a 7.5% of AGI floor: you can only count medical expenses that exceed this fraction of your income.
* It's only a deduction for income tax. FSAs let you save on FICA as well.
* It's an itemized deduction. You only benefit after your total itemized deductions exceed the standard deduction. Fewer people are itemizing nowadays because the federal standard deduction is large.
* There's a 7.5% of AGI floor: you can only count medical expenses that exceed this fraction of your income.