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posted
‎October 30, 2019
11:56 AM
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‎October 30, 2019
11:56 AM
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Turbotax says i need at least $700 in medical expenses to claim. I have over $1400 but it's not affecting my return. Shouldn't I be getting money back? I don't understand
I made 23000 this year.
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Turbotax says i need at least $700 in medical expenses to claim. I have over $1400 but it's not affecting my return. Shouldn't I be getting money back? I don't understand
Medical expense is a non-refundable credit, like almost all tax credits today.
This means that the credit of tax reduces your tax payable. When your combined amount of non-refundable credit exceeds the amount of tax payable, no further credit applies.
Also, Medical has a 3% deductible, in your case around $690, so you have the rest ( ~$700) available to claim. But it is a non-refundable credit (Not a deduction).
A refund is only,ever, when you overpay tax on your income. This usually happens when more tax than required is taken off your pay at source. Refunds are not new money!