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#8: Itemize Deductions When Medical Costs Spike
In years with major medical expenses—surgery, hospitalizations, or ongoing treatment—it might make sense to itemize deductions instead of taking the standard deduction. A major illness can trigger $15,000–$20,000 in qualifying expenses, which could exceed your standard deduction threshold when combined with other deductible items like state taxes and mortgage interest. Talk to a tax professional in high-expense years to see whether itemizing saves you more money.
Healthcare costs are inevitable, but unnecessary taxes on those costs aren't. Start tracking your expenses now, and consider which of these strategies could apply to your situation this year.
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