Imagine running a small business and being assessed a penalty by the IRS. Then imagine being told by the IRS that the only way to avoid the penalty is to commit a serious felony, laundering money. This Kafkaesque...
- The Tax Policy Blog
- Being Sick Ain't All Bad
Being Sick Ain't All Bad
The era of medical house calls is, for all intents and purposes, dead. And in most cases, medical insurance does not cover expenses for getting to and from visits to your doctor. Nor does it usually cover a trip to the pharmacy—but Uncle Sam does. Granted, these deductions may only be taken to the extent they exceed 7.5 percent of one's adjusted gross income (AGI). But it's something—especially for the chronically ill.
If you run into illness during flu season, take solace in the fact that the federal government has you partially covered; medical travel costs are deductible expenses. And boy are these costs broadly defined.
All that is required is that the costs of travel be related to diagnosis, cure, mitigation, treatment, or prevention of disease. You may even deduct travel for any treatment that affects any part or function of your body.
In other words, it essentially covers anything.
So whether you just have the flu or are fighting a battle with a chronic disease, by all means keep good records of your expenses for medical-related travel. When 7.5 percent of your AGI is exceeded, it will be worth the effort.
Follow David S. Logan on Twitter @Loganomix
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The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.