When a net operating loss is carried forward, it can affect the medical expense deduction of that year.

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A net operating loss (NOL) is a tax deduction that can be carried forward to offset taxable income in future years. When an NOL is carried forward, it can reduce the amount of taxable income that is subject to the medical expense deduction. This is because the medical expense deduction is calculated as a percentage of adjusted gross income (AGI). AGI is calculated by subtracting certain deductions, including NOLs, from gross income. Therefore, when an NOL is carried forward, it reduces AGI and, as a result, the amount of medical expenses that are deductible.

When a Net Operating Loss Is Carried Forward, It Can