Medical Expense “Bunching”: Maximize Your 2024 Savings

As you file your 2023 tax return, start thinking about how you can boost itemized deductions for 2024. You may be able to “bunch” medical expenses so you exceed the 7.5% of adjusted gross income necessary to deduct some costs.

Say, for example, you’ve already scheduled surgery that will involve out-of-pocket expenses but still fall short of the deductible threshold. Think about scheduling elective procedures, such as dental work or Lasik surgery, and making qualified purchases ( ) that will push you over the threshold. Note that only the expenses over that amount and that aren’t covered by insurance or paid through a tax-advantaged account will be deductible.

Contact one of our experts for more tax planning help!