Back to Resources
Article

The 7.5% AGI threshold, plainly

What the gauge is measuring, why it's 7.5%, and how it works on Schedule A.

The dashboard gauge fills up as your tracked expenses approach a threshold based on 7.5% of your adjusted gross income. Here's what that means in plain English.

What it is

Schedule A of the US federal return allows itemized medical expenses above 7.5% of AGI to be reported. The threshold is the dollar amount you'd need to exceed before the excess could potentially be reported. The number is yours, not ours — it follows your AGI.

Why 7.5%

The 7.5% floor on medical expenses is set by US tax law. Before 2017 it was 10% for most filers; the current 7.5% floor was extended permanently in 2020. It's a deliberate cliff: only the medical spending above your personal threshold becomes deductible.

How the math works

If your AGI is $80,000, your threshold is $6,000. Tracked medical expenses (including the gluten-free premium) need to clear $6,000 before any portion contributes to itemized deductions. Once cleared, only the amount above the threshold is potentially deductible.

Confirm with your CPA or tax professional

Gluten Hero is a financial tracking and planning tool. It does not provide tax, legal, or medical advice. Always confirm details with official resources and qualified professionals.

Do this in the app →

More from the Resources Library

Guides, calculators, FAQ, and downloads, all free to read.

Browse all resources