Reduction in medical expense deduction floor under Section 103 of the Act
The threshold on the itemized deduction for unreimbursed medical expenses has been lowered from the extent that such expenses exceed 10 percent of Adjusted Gross Income (“AGI”) to the extent that such expenses exceed 7.5 percent of AGI for tax years 2019 and 2020. Iowa is not conformed with this extension for tax year 2019.
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Iowa treatment for Tax Year 2019: Taxpayers may only claim an itemized deduction for unreimbursed medical expenses to the extent that such expenses exceed 10 percent of AGI, as modified for Iowa purposes. For more information, see the 2019 IA 1040 expanded instructions, line 37.