How to Deduct Mileage From Flexible Expenses

Health flexible spending accounts allow employees and the employer to contribute to an account on a pre-tax basis that will reimburse the employee for qualified medical expenses. Typically, medical expenses include prescription drugs and doctor co-pays. However, transportation costs associated with obtaining medical care are also considered qualified medical expenses. Accordingly, the cost for mileage may be reimbursed by or paid for from your health FSA as a medical expense. To determine this cost, you utilize the applicable mileage rate as established by the IRS, which is 19 cents per mile driven for medical purposes in 2011.

Instructions

1. Compile a log of miles driven to get medical care. This log should contain information about each trip and include the date, the patient, the location of the doctor, the type of treatment or the diagnosis and the number of miles driven.

2. Multiply .19 by the number of miles driven for each trip to determine the amount that you may be reimbursed by your health FSA. For example, if you drive 100 miles roundtrip for an appointment with a specialized doctor, you would multiply .19 by 100 to arrive at $19. This is the amount you may submit to your health FSA for reimbursement.

3. Review your health FSA’s claim procedures to determine the proper form by which to request reimbursement.

4. Fill out a health FSA claim form. This form will likely include your name, address, Social Security number or account number as well as information regarding your claim, such as the date, services received or qualified medical purchases made and the amount you are seeking to be reimbursed.

5. Submit your mileage log with other medical records for which you are seeking reimbursement.

References

• IRS.gov: Topic 502 – Medical and Dental Expenses
• AFA Advantage; FAQs
• IRS.gov: IRS Announces 2011 Standard Mileage Rates