How to Deduct Medical Travel on Taxes

As medical expenses increase year after year, and new medical treatments are created every day, you might find yourself in a position where you need to travel to access good medical care for a condition. Whether you need to travel out of the country for a medical procedure, or to another state for a research study, or to a conference on a condition you or a family may have, deducting medical travel expenses is one way to ease the financial burden of these extra medical costs. Medical insurance does not cover most medical travel (except for emergencies), but the Internal Revenue Service does allow you to deduct medical travel expenses, within certain limits. Read on to learn more about how to deduct medical travel on taxes to ease your financial burden.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• tax software
• receipts
• mileage log
• calendar

How to Deduct Medical Travel on Taxes

1. Create a spreadsheet that documents every trip you took for medical purposes. Make sure you note the days that were part of the medical travel. If medical appointments were on a Friday and on a Monday, you can deduct necessary travel expenses for that weekend.

2. Gather receipts and enter medical travel-related receipts into your spreadsheet.

3. Compute any travel miles. If you drove, calculate the total number of miles for medical travel from your mileage log. If you flew or took a train or bus, if there was any driving (driving to the airport or train station, for instance), calculate those miles.

4. Total your receipts, and calculate the amount of mileage dollars (mileage multiplied by 20 cents for 2007) you can deduct. Does the number equal or exceed 7.5% of your income? If not, you cannot deduct the travel. If so, proceed to Step 5.

5. Calculate the difference between itemizing on your taxes, and taking the standard deduction. If you pay fewer dollars by taking the standardized deduction, then stop -- you cannot deduct medical travel expenses. If you wish to itemize, proceed to Step 6.

6. Include all tallied medical travel expenses on Schedule A on your taxes.

Tips & Warnings

• Medical trials are considered medical treatment, and travel expenses to and from are deductible as medical travel.
• You cannot deduct any medical travel expenses that are reimbursed by a flexible spending account.
• While travel expenses to a medical seminar on a chronic condition suffered by you or a family member is deductible, meals and lodging are not, so keep this in mind. If you have treatment in conjunction with the seminar, though, some meals and lodging may be deductible.

Resources

• IRS Pub 502 Medical and Dental Expenses