Submitted By: Dick
Answered: December 10, 2013 8:30 am

Can medical expenses be carried over?

Medical expenses can be deducted as itemized medical expenses only in the year in which they are paid. If you can’t use them in the year of payment because you don’t itemize or total medical costs don’t exceed your threshold (10%; 7.5% for those 65 and older), they are lost forever.

However, if you contribute to a medical flexible spending account (FSA), the plan may allow you to carry over up to $500 of contributions that haven’t been used. This carryover option is new for 2013, so check with your plan administrator to see when it applies to you.

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Tax Glossary

Adjusted basis

A statutory term describing the cost used to determine your profit or loss from a sale or exchange of property. It is generally your original cost, increased by capital improvements, and decreased by depreciation, depletion, and other capital write-offs.

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