Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.
01-05-2018 07:14 PM
When I complete the schedule for medical deductions, it correct uses 7.5% of AGI but when the form is populated it is using 10%. We are both over 65.
01-05-2018 08:41 PM
Welcome to the H&R Block community.
The floor threshold is 7.5% of adjusted gross income for everyone as of tax year 2017, so as long as it is calculating correctly that's what is important for now.
This is an issue that's due to the change in the tax law regarding the medical expense deduction so make sure you update the software the next time an update is available (or watch for it to be updated if you're using the online version). The filing season doesn't officially start until January 29th and there will be updates before then. If an update doesn't correct this by the season start date then let me know and I'll pass it along.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)
01-09-2018 02:35 PM
You are correct, the Deluxe program is wrong. The HR Block 2017 program changed the calculation for the Medical Expense floor from 10% to 7.5% (per the new tax law); however, when the actual limit is calculated at the bottom of the itemized deduction form, the program still uses 10% of AGI. Block should fix this in the next update, as it is absolutely incorrect.
To be clear, this line is correct: it uses 7.5% of AGI for the limit
Since your AGI is $xxx,xxx, your expenses must be more than $xx,xxx.
This line is incorrect, at the bottom of the Medical and Dental Expenses form:
10% of AGI - $xx,xxx
01-10-2018 05:11 PM
As of the 1-10-2018 Update this calculation is still incorrect, per the 2017 new tax law. The deduction is still calculating based upon a 10% AGI and not the revised 7.5% which was retroactive to expenses incurred during 2017.
01-12-2018 07:07 PM
The new update (Federal Version 5701 for MacOS) that came out today 1-12-18 does not fix this problem. Also the downloaded update for MacOS freezes and will not install. Had to call H&R Block support to download a new, updated Deluxe version.
01-13-2018 05:33 PM
There will be another update on January 17th. The medical expenses issue may be fixed with that one, but that won't be the last update so keep checking back. Filing season starts on the 29th.
01-18-2018 03:17 PM
I just installed an update (today, Jan. 18, for Windows version), and the problem has been fixed for me. The deduction limit is now calculating at 7.5%, where this morning, before the update, the calculation was using 10%.