Medical expenses are up-deductions for them are down. Here's how it works.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.



He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

Basic Medicare B premiums go up to $104.90 a month, somewhat less than the increase in Social Security benefits. But premiums are higher for richer seniors whose modified AGI for 2011 was more than $170,000 for couples or $85,000 for singles. Total premium and surcharges can rise as high as $297.40 a month.

Deductions are down, at least for those under 65. The threshold for deducting medical expenses rises to 10 percent of AGI. But for older folks - even if only one of a couple filing jointly is 65 or older - the threshold stays at 7.6 percent.

Deductions on long-term-care premiums are $4,550 per person 71 or older, $3,640 for those 61 to 70, $1,360 for those 51 to 60, $680 for those 41 to 50, and $360 for anyone younger. And workers can put $2,500 into health flexible savings accounts.