Sunday, February 5, 2012

Deducting travel costs for medical expenses: what if I'm traveling TO my home city?

I know I can deduct some travel/transportation expenses when itemizing medical deductions. But in this hypothetical situation, I am spending several months somewhere other than my home city, for personal reasons-- for example, visiting relatives or living at my vacation home. Can I deduct the cost of travel back to my home city for medical appointments? Even though I knew I was going to have these appointments and yet I chose to be leave town for a while?Deducting travel costs for medical expenses: what if I'm traveling TO my home city?Everyone shouts NO!!!

Not that fast, colleagues. It actually depends.



Travel expenses will be deductible as medical expenses IF the *primary purpose* of travel was to receive medical services. Destination being your home town does not automatically kill the deduction.



Example 1. I live in Houston TX, and I take an extended vacation to Orlando FL (I wish). Let's assume that I receive some course of therapy that requires a regular monthly check-up and injection at my Houston doctor's office. I cannot miss this appointment without risking my health. So, in the middle of my Florida vacation, I fly back to Houston to see my doctor, then I spend a night at home and return back to Orlando the next morning, to resume my vacation. Under these circumstances, my travel should qualify as medical expense.



Example 2. Same scenario, except I go back to Houston to attend a family wedding. Since I'm in Houston anyway, I also schedule a visit to my doctor on the same day. Here, my travel is NOT deductible, because the primary purpose for the travel was personal (wedding), and medical was incidental.



I'm sure we can come up with a lot of "gray area" examples that can be argued both ways. But my point is: under the right circumstances, it COULD be deductible.



PS. But if it was simply returning home after being away, then there is no way to argue that the purpose was "primarily medical."



Michael Plaks, EA, Houston TX

www.MichaelPlaks.comDeducting travel costs for medical expenses: what if I'm traveling TO my home city?This would be a personal expense and would NOT be a deductible medical expense on your income tax return.

Hope you find the above enclosed information usefulDeducting travel costs for medical expenses: what if I'm traveling TO my home city?No.Deducting travel costs for medical expenses: what if I'm traveling TO my home city?
of course not

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