can you fedral tax return max out. i.e. be more than u paid in?

Question

just wondering. this year i have had allot of medical expens.
that i can right off on taxes. but it adds up to way more than
i have paid the goverment. just wondering if it ever maxes
out.

Answer 1

Medical expenses can be used as deductions, which reduce the amount of tax you pay for the year. This is offset by how much was withheld. Unlike credits (the earned income credit, for example), deductions are just a reduction of the tax due, and can't be more than the tax. I think there's a percent maximum that can be claimed for medical expenses.

[edit] - There is a difference between a deduction and a credit. For things like medical expenses, specifically, you can't claim more than your tax amount. However, through deductions and credits, you often will have overpaid through withholding, and will be refunded the amount you overpaid. Medical expenses specifically can be listed as deductions (IF you itemize on your taxes, and do not take the standard deduction - not a good choice unless you also have a mortgage), but the deduction for medical expenses cannot be more than a particular percentage of your taxable income.

Answer 2

Medical expenses are an itemized deduction on Schedule C of the 1040. They are reduced by 7.5% of your AGI. Any amount above that threshold is added to any other itemized deductions. Deductions reduce the amount of your taxable income, but not below zero. The only way to receive a refund of more than your withholding is if you have a 'refundable credit'. the most common is the Earned Income Credit.

Answer 3

There are honestly a number of regulations coping with this. First, that's incorrect to assert that the sixteenth substitute enables Congress to pass an earnings tax. Article I of the form enables Congress to collect taxes yet places the limit on that power that all and sundry direct taxes might desire to be apportioned. till now the sixteenth substitute grew to become into handed, earnings taxes might have been unconstitutional on account that's impossible to apportion an earnings tax. despite the fact that if, there is an extremely stable argument as to why earnings taxes at the instant are not direct taxes. nonetheless, the sixteenth Admendment made it sparkling that earnings taxes prefer no longer be apportioned. After the sixteenth substitute grew to become into handed, Congress handed the interior gross sales Code that's call 26 of america Code. This makes it somewhat sparkling it extremely is sweet to pay federal earnings taxes.

Answer 4

Don't forget when adding you medical expenses any more that is over 7.5% of your Adjusted Gross Income not you regular income is an itemized deduction not all of the amount of your medical expenses. An example you have salary of $10,000 and pretend you are a teacher and buy supplies for your class you can deduct $250 off you income this makes your AGI $9,750. You have medical expenses of $1,000. Take you AGI and mulitply it by 7.5% which is $731.25. There for 268.75 is part of your itemized deductions. Good Luck

Answer 5

The maximum that you can ever get back without assistance is what you paid in. If you qualify for earned income credit because of income level than you can actually get back more than you paid in.

Answer 6

You certainly can if you qualify for the Earned Income Tax Credit.

Answer 7

Thats called a tax refund

Answer 8

you'll probably get a refund if I am right about what you are talking about