When a net operating loss is carried back to a non-loss year, the net operating loss can affect the medical expense deduction of the carryback year.

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When a net operating loss is carried back to a non-loss year, it can reduce the taxable income of the carryback year. This, in turn, can increase the medical expense deduction since the deductible amount of medical expenses is based on a percentage of taxable income. Therefore, the net operating loss can affect the medical expense deduction of the carryback year.

When a Net Operating Loss Is Carried Back to a Non-Loss