U.S. Sen. Susan Collins (R-ME) recently requested that a two-year extension and expansion of the medical expense deduction be included in the next COVID-19 federal funding relief package under consideration in Congress.
“Expanded and continued certainty for this deduction would help millions of Americans,” Sen. Collins wrote in a July 16 letter sent to U.S. Senate Majority Leader Mitch McConnell (R-KY). “By ensuring that this deduction does not expire at the end of this year, we will provide relief for those facing uncertainty in their recovery.”
The medical expense deduction is vital for Americans who have pre-existing medical conditions, suffer chronic medical conditions, unexpected illnesses or injuries, or face costs for long-term care services that are not covered by health insurance, according to Sen. Collins’ letter.
“As we work to provide additional relief to help address the needs of older Americans, children and individuals with disabilities in light of the ongoing COVID-19 crisis, the medical expense deduction is an important relief tool for the high healthcare costs many Americans are facing, which have only been exacerbated by this pandemic,” the senator wrote. “As we learn more about COVID-19, it is clear that not all recoveries are equal and that for many the health impacts continue for a long time.”
Sen. Collins has been a long-time supporter of the medical expense deduction, which nearly 20,000 Mainers benefit from, according to AARP estimates.
Most recently, in the Tax Cuts and Jobs Act, Sen. Collins co-authored a provision that provides deductions of medical expenses exceeding 7.5 percent of adjusted gross income (AGI) for taxpayers filing in 2017 and 2018, instead of 10 percent of AGI, according to her letter, which noted that she helped secure a one-year extension of this provision, which expires at the end of the calendar year.
“Given the ongoing crisis, we need to act now to eliminate any uncertainty about the availability of this deduction,” she wrote.