Final answer:
No, not all taxpayers must have medical expenses less than 7.5%. the question seems to be referring to the medical expense deduction which allows taxpayers to deduct qualifying medical expenses that exceed a certain percentage of their adjusted gross income (AGI).
Step-by-step explanation:
No, not all taxpayers must have medical expenses less than 7.5. The question seems to be referring to the medical expense deduction, which allows taxpayers to deduct qualifying medical expenses that exceed a certain percentage of their adjusted gross income (AGI). Currently, the threshold is 7.5% of AGI for taxpayers under the age of 65, and 10% of AGI for taxpayers who are 65 or older. This means that if a taxpayer's medical expenses in a given year exceed the applicable threshold, they may be able to deduct the excess amount on their tax return.
Example: Let's say a taxpayer is under the age of 65 and has an AGI of $50,000. In this case, the threshold for the medical expense deduction would be 7.5% of $50,000, which is $3,750. If the taxpayer's total medical expenses for the year amount to $5,000, they would be able to deduct the excess amount of $1,250 ($5,000 - $3,750) on their tax return.