Reducing Adjusted Gross Income (pay, increase, deductible, medical)

[Wes927]

This year I'm having a lot of out-of-pocket medical and dental expenses that I'm paying for out of my emergency fund. Paying for them is not a problem, but I'd like to get my Adjusted Gross Income down because only medical expenses above 10% of the AGI are deductible.

Do contributions to my 403(b) reduce my AGI? If so, I will definitely increase these contributions.


Thanks in advance,

Wes

[Thepreacherswife]

Yes, elective deferrals from your pay like contributions to a 401(k) or 403(b) will reduce your wages subject to tax, so your AGI will be lower as a result.

If you can get yourself a high-deductible health plan and set up an HSA, you can dump several K into that and deduct it above the line as well.

[Lowexpectations]

The wife and I reduce ours by 35000 a year thanks to our 401ks so plug away