Medical Mileage Deduction: What is it and what does the IRS allow?

what does the irs allow for mileage

Here’s the excerpt direct from the IRS website regarding the medical mileage deduction (http://www.irs.gov/publications/p502/ar02.html#en_US_2012_publink1000179026 ):

You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care.

  • Bus, taxi, train, or plane fares or ambulance service,
  • Transportation expenses of a parent who must go with a child who needs medical care,
  • Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone, and
  • Transportation expenses for regular visits to see a mentally ill dependent, if these visits are recommended as a part of treatment.

Car expenses.    You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. You cannot include depreciation, insurance, general repair, or maintenance expenses.If you do not want to use your actual expenses for 2012, you can use the standard medical mileage rate of 23 cents a mile. [Comment – Remember this is referring to 2012 rates. The 2013 rate is now 24

cents/mile.]

You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate.

Example. In 2012, Bill Jones drove 2,800 miles for medical reasons. He spent $500 for gas, $30 for oil, and $100 for tolls and parking. He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction.

He figures the actual expenses first. He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630.

He then figures the standard mileage amount. He multiplies 2,800 miles by 23 cents a mile for a total of $644. He then adds the $100 tolls and parking for a total of $744.

Bill includes the $744 of car expenses with his other medical expenses for the year because the $744 is more than the $630 he figured using actual expenses.

Transportation expenses you cannot include.      You cannot include in medical expenses the cost of transportation in the following situations.

Source: milebug.com

Category: Taxes

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