What percentage of their adjusted gross income must taxpayers exceed to deduct medical expenses?

To deduct medical expenses on their tax return, taxpayers must exceed a specific threshold of their adjusted gross income (AGI). The correct threshold is set at 7.5%. This means that only the portion of unreimbursed medical expenses that exceeds 7.5% of the taxpayer's AGI can be deducted. For example, if a taxpayer has an AGI of $100,000, they can only start deducting medical expenses after their medical expenses exceed $7,500 (which is 7.5% of $100,000).

This percentage was established to ensure that only those taxpayers with significant medical expenses beyond a certain level receive a deduction, thereby focusing the benefit on those with higher medical costs relative to their income. It is important to note that this threshold has changed in different tax years due to legislation, but as of the time framed in this question, the 7.5% figure is accurate for most taxpayers.

Choosing a different percentage, such as 5%, 10%, or 15%, would not align with the current tax code, which defines the limit for this deduction as 7.5%. Therefore, the choice of 7.5% accurately reflects the deduction rules in effect, enabling taxpayers to