Originally posted by: EagleKeeper
Originally posted by: markgm
Every year I fill out my taxes and itemize all of my deductions. In 2006 I had a huge medical bill that alone will have me paying $0 in Federal taxes. Is there a point then spending the time filling in the rest of the deductions that I could claim such as mortgage interest, student loan interest, charitable donations, etc? I wasn't sure if they compare year to year so if I don't claim something this year and claim it next year it'll increase the chances of an audit in the future.
Thanks!
A comparison of your tax return to a different year will only happen if something causes a return to get flagged.
Given the scenario that you have described,
In my opinion only, it would be better to not use the medical deduction completely. A large medical deduction that eliminates all of your tax liability is sure to raise a flag.
All things being equal, do the Schedule A as normal (without the medical expenses) and then increase the amount of the medical expenses so as to cause the final numbers to just exceed your tax liability.
If the medical bill(s) has not been fully paid; look at shifting some of the payments into this year.