The IRS released an updated version of Publication 502, “Medical and Dental Expenses.” Publication 502 explains the medical and dental expenses that can be claimed as a deduction on an individual’s tax return.
Publication 502 is also widely used for guidance on what qualifies as a reimbursable medical expense under a health flexible spending account plan, a health reimbursement account plan or a health savings account. It lists several expenses and explains whether those expenses would or would not be considered “medical care” under Code section 213.
Using Publication 502 for medical expense determination for an FSA is helpful, but cannot be relied on completely. For example, insurance premiums are considered a medical expense in Publication 502 and may, in certain circumstances, be claimed as a deduction on an individual’s tax return, but may not be reimbursed from an FSA.
The 2016 version of Publication 502 has few changes from the prior version. The Publication revises the dollar amount of the standard mileage rate for using a car to get medical care and addresses the health coverage tax credit which was reinstated in 2015. A copy of the revised Publication 502 can be found by clicking here.
