U.S. taxpayers deducted $77 billion in itemized medical deductions in tax year 2020, about two-thirds of which was deducted on tax returns where the primary taxpayer was 65 or over. The deductibility of medical expenses represents an important form of social insurance for out-of-pocket medical expenses delivered through the tax code, where eligibility and available benefits are determined by income, out-of-pocket spending on healthcare, and other financial characteristics. Tracking this spending and determining what can be deducted can be complex and may result in not all eligible spending being deducted. This project seeks to quantify the share of eligible expenses that are deducted, the mechanisms behind incomplete take-up, and the implications for optimal policy design.

Co-sponsored with Center for Health Incentives and Behavioral Economics and the Division of Health Policy.

Please note: In-person attendance at this event is preferred. Virtual access will be provided to registrants who are unable to be on campus.

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Speaker

Gopi Shah Goda, PhD is a Senior Fellow at the Stanford Institute for Economic Policy Research (SIEPR) and Professor of Economics (by courtesy) at Stanford University, a Faculty Research Fellow at the National Bureau of Economic Research and a Fellow of the Society of Actuaries. From July 2021 to July 2022, Gopi served as a senior economist at the White House Council of Economic Advisers. She also served as SIEPR’s Deputy Director from September 2016 to July 2021.