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For a couple reporting $100,000 of taxable income (from Social Security, pensions and investment earnings, for example), only medical expenses above $7,500 could be deducted. If the couple had no medical expenses other than their CCRC entrance fee, they could deduct $86,550 ($94,050 minus $7,500) from their taxable income. If they were in the 20 percent tax bracket, this would save them $17,310 in the tax year during which they paid the entrance fee.
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