Publication 502: Medical and Dental Expenses; Publication 502 Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Important Changes

Standard mileage rate. The standard mileage rate allowed for out-of-pocket expenses for a car when you use it for medical reasons is 12 cents a mile for 2003. See Transportation under What Medical Expenses Are Includible.

Self-employed health insurance deduction rate increase. If you are self-employed, you may be able to deduct, as an adjustment to income, up to 100% of the amount you paid for medical and qualified long-term care insurance in 2003 for yourself, your spouse, and your dependents. This is an increase from the 70% of such expenses you were allowed to deduct in 2002. For more information, see Health Insurance Costs for Self-Employed Persons.

Health coverage tax credit. There is a new credit for health insurance premiums paid by certain workers who are displaced by foreign trade or who are receiving a pension from the Pension Benefit Guaranty Corporation. This credit is available to eligible individuals for qualifying payments made for each month in 2003. For more information, see Health Coverage Tax Credit near the end of this publication.

Important Reminders

Deduction threshold. Even if you have medical and dental expenses, you may not be able to claim a deduction for those expenses. This is because you can deduct only the part of your medical and dental expenses that is more than 7.5% of your adjusted gross income.

Obesity as a disease. The cost of participation in a weight-loss program as a treatment for the disease of obesity is an amount paid for medical care. However, the cost of purchasing reduced-calorie diet foods is not a medical expense if these foods substitute for food you would normally consume to satisfy your nutritional requirements. For more information, see Weight-Loss Program under What Medical Expenses are Includible and under What Expenses Are Not Includible.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1–800–THE–LOST (1–800–843–5678) if you recognize a child.

Introduction

This publication explains the itemized deduction for medical and dental expenses that you claim on Schedule A (Form 1040). It discusses what expenses, and whose expenses, you can and cannot include in figuring the deduction. It explains how to treat reimbursements and how to figure the deduction. It also tells you how to report the deduction and what to do if you sell medical property or receive damages for a personal injury.

Medical expenses include dental expenses, and in this publication, the term “medical expenses” is often used to refer to medical and dental expenses.

You can deduct only the part of your medical and dental expenses that is more than 7.5% of your adjusted gross income. If your medical and dental expenses are not more than 7.5% of your adjusted gross income, you cannot claim a deduction.

After discussing the medical and dental expenses deduction, this publication explains how to treat impairment-related work expenses, health insurance premiums if you are self-employed, and the health coverage tax credit that is available to certain individuals.

Useful Items - You may want to see:

See How To Get Tax Help near the end of this publication for information about getting publications and forms.

Comments and suggestions.

We welcome your comments about this publication and your suggestions for future editions.

You can e-mail us at *taxforms@irs.gov. Please put “Publications Comment” on the subject line.

You can write to us at the following address:

Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Publication 502Introductory Material

Important Changes

Important Reminders

Introduction

Useful Items - You may want to see:

Publication 502
Introductory Material