Originally Posted by Guest

Currently, individuals can deduct most out-of-pocket medical expenses that exceed 10 percent of their annual adjusted gross income—that is, taxable income minus deduction-based deductions. But under the proposed plan, that deduction would be eliminated. For individuals or families with high out-of-pocket medical bills, such as the elderly or the chronically ill, killing the deduction could mean major tax increases.

Even healthy elderly taxpayers face the eliminations of popular tax breaks. The House bill also repeals the 15 percent tax credit for all taxpayers 65 and older, who can cut up to $5,000 from their tax bills as an individual or up to $7,500 for married seniors. The same credit is utilized by taxpayers under 65 who are retired on permanent disability.

Eliminated: Deductions for Personal Casualties

Currently, the Internal Revenue Service allows taxpayers to deduct uninsured losses related to the destruction of their home, household items, and vehicles in a federally declared disaster, or from “any sudden, unexpected, or unusual event” like a sinkhole, theft, flood, fire, or volcanic eruption (it happens!).