Update on Allowable MA Medical Expense Deduction

Under the theory that there is a carryover deduction on the MA personal income tax return for the allowable federal itemized deduction, does the increase in the federal floor (for under age 65) from 7.5% to 10% apply to MA, or will MA continue to apply the lower 7.5% floor because MA has adopted, and generally follows, the federal code as of December 31, 2005.

Answer – No to the 10% question and also no to the 7.5% question.

Well, Mr. Editor, you had better explain yourself!  Here’s the real answer, according to the MA DOR speakers at the recent U Mass seminar.  MA considers this carryover amount to be an exemption and not a deduction.  It’s found on line 2 of MA Form 1 as one of the allowable exemptions.  So, it matters not how it is calculated on the federal return.  MA allows the carryover as an exemption and if the floor is changed, this does not create a federal/state difference as it would if the carryover amount were considered to be a MA deduction.