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All CollectionsMeans TestChapter 7 - 122A-2
Chapter 7 Means Test Calculation - Out-of-Pocket Health Care Allowance
Chapter 7 Means Test Calculation - Out-of-Pocket Health Care Allowance

How to enter Line 7 of 122A-2

Katie Stasiulewicz avatar
Written by Katie Stasiulewicz
Updated over 5 years ago

Question from line 7: Out-of-pocket health care allowance: Using the number of people you entered in line 5 and the IRS National Standards, fill in the dollar amount for out-of-pocket health care. The number of people is split into two categories people who are under 65 and people who are 65 or older because older people have a higher IRS allowance for health care costs. If your actual expenses are higher than this IRS amount, you may deduct the additional amount on line 22.

This calculation is done automatically using various pieces of data:

  1. Number of people in the household

  2. Client Profile > Filing Information > Version of legal data applied to case (this will default to the most current data but you can change the version here)

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