The IRS released updated versions of Publication 502 and Publication 503.
Publication 502 explains the itemized deduction for medical and dental expenses that individuals may claim on their tax returns. Medical expenses are defined as the costs of diagnosis, cure, mitigation, treatment or prevention of disease, and the costs for treatments affecting any part or function of the body.
Publication 502 is also often used as a reference for determining what expenses are considered medical expenses that may be reimbursed from a health flexible spending account plan. It is important to note, however, that while Publication 502 identifies Insurance Premiums as medical expenses, but they are not eligible for reimbursement from a health FSA.
Publication 503 explains the tests that must be met to claim the credit for child and dependent care expenses on a tax return. Employees may use the information in Publication 503 to determine if they should participate in a dependent care flexible spending account plan or claim the child care tax credit.
To access Publication 502, click here. To access Publication 503, click here.
