Prior to 2013, taxpayers could only deduct medical expenses to the extent that total medical expenses exceeded 7.5% of the adjusted gross income (AGI). This is the amount that it must exceed before a taxpayer can take a deduction. This concept is known as the “floor.”
The medical expense floor for most taxpayers (except for taxpayers age 65 or older) in 2013 is now 10%. This means a taxpayers total medical expenses must exceed 10% of the AGI before there is a deduction.
Taxpayers age 65 and older can continue to use the floor of 7.5% until 2016 when it will be 10%.