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.

Tax Glossary

Capital loss carryover

A capital loss that is not deductible because it exceeds the annual $3,000 capital loss ceiling. A carryover loss may be deducted from capital gains of later years plus up to $3,000 of ordinary income.

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