Publications 502 and 503

Posted by BAS - 09 March, 2023


The IRS released updated versions of Publication 502 and Publication 503 for preparing 2022 tax returns. Publication 502 explains the medical expenses that are deductible on a federal income tax return. Publication 503 explains the requirements that must be met to claim the dependent care tax credit on a federal income tax return for child and dependent care expenses.

Few changes were made to the 2021 version of Publication 502. Inflation-adjustment dollar amounts were updated and personal protective equipment such as masks and hand sanitizer for treating COVID-19 is included as a medical expense. Clarifications were also added to the deductibility of treatment expenses for excessive use of alcohol and drugs.

While Publication 502 is intended only for identifying deductible medical expenses, many use it as a guide for which expenses may be reimbursed from a health flexible spending account, health reimbursement account or health savings account. Using the publication for this purpose may not work in all situations since some expenses (such as insurance premiums) are identified as medical in Publication 502 but may not be eligible for reimbursement from account-based plans.

Publication 503 was revised to remove the temporary changes to the dependent care tax credit and dependent care assistance plans created by the American Rescue Plan Act and the Consolidated Appropriations Act of 2021 for COVID-19 relief.

The 2022 Publication 502 may be accessed by clicking here .

The 2022 Publication 503 may be accessed by clicking here .

Topics: Company News, HR & Benefits Compliance, HR & Benefit Plans, HR & Benefits News

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