Posted on 05/22/2017 12:14:14 PM PDT by fwdude
I'm a little embarrassed to ask since I'm an accountant of sorts, but I've never been able to find a definitive answer to this. Perhaps it is more "working knowledge" that someone in the personal tax field is comfortable with.
On deductible medical (or any) miles, what is considered the start and end point on the trip for mileage calculation purposes? I'm asking because it is almost never a cut-and-dry situation. Many people begin their trip to the doctor from an employer, from an errand destination, or just while "out," not neatly from home, to doctor, to home. If a mileage log is dutifully kept, this is going to be a problem. What leg of the trip is considered deductible if that same leg just so happens to be on my way home from work (not deductible.)? If an errand is thrown in the middle?
I don't want pat, canned answers: read my question first before answering. There has to be some tested precedent on this. Thank you.
I would probably use your actual mileage for the trip you are making. So, if you leave work, then go to the medical appointment, then go home, count the mileage you accrue on your vehicle from the time you leave work until you arrive home.
The IRS is not going to come and check to see if you would have covered some of the miles anyway, such as the miles you would normally have from work to home.
This is just a guess on my part. If you keep these records this way, you can always reduce the miles at some point, if you feel that this approach is too aggressive.
Thanks, that is my impression as well.
I wouldn’t think that many people are audited on this (I haven’t known any) but would like some practical experience input on it.
You may also be able to count mileage for trips to the pharmacy.
Even if you would be audited, if you can present records/logs of this mileage (dates, destinations, etc.), I cannot imagine that they would quibble over the mileage.
Medical mileage only matters if your UNREIMBURSED medical expenses exceed 7 1/2 percent (0.075) of Adjusted Gross Income AND you itemize deductions.
Most people just take the standard deduction.
Itemizing makes sense if you are on the front end of a mortgage, have high state and local taxes, and/or make charitable contributions approaching the Biblical tithe.
My question would be if I don’t keep detailed mileage logs (who does?) then can other methods be acceptable, like a Google map printout of the route taken? Or do actually odometer reading need to be in evidence?
I admit that I don’t have a source for this but just my opinion based on other similar questions; I would base the decision for the deductible trips on what is the primary purpose of the trip. I would base the mileage on what is necessary.
If you went to the grocery store that had a pharmacy for groceries that you needed and picked up a refill at the same time then I would say that trip was not medical.
If however you went to the same store to pick up a prescription that was running out that day and happened to pick up some milk then that trip would be medical.
Determining the primary purpose of the trip would be based on the facts and circumstances and state of mind of the taxpayer. Therefore, lots of gray.
As for necessary, if you had a DR appointment then the primary purpose of a trip that also had personal stops along the way would be medical. If the personal stop was way out of the way, then that portion of the trip would not be necessary and not deductible.
It’s all between you and the IRS agent that audits you.
I calculated the mileage from home to dr./cancer center and back. I applied that to every documented appointment. My tax guy said that was good and deducted that last year. Also a week stay in a hotel while my wife had twice a day radiation. I don’t push my luck with deductions.
Hope that helps.
I've been deducting expenses on Sched A for years, but the medical part just didn't add up to any benefit - until this year. I've just been diagnosed with Prostatic Adenocarcinoma, Prostate Cancer. The expenses are adding up fast.
Gee, I feel much better. LOL!
If you are worried about audit, you should keep some record. Even if it is “15 miles to see Dr. Smith” on these dates: [list dates]. I think a google map would work. But the key would be the dates, destinations, and individual mileage per trip (not odometer readings).
How do you calculate the miles, though? With a log that records starting and ending odometer reading? With a trip app? With a map?
Question is, what is acceptable to the IRS?
Yes, I just learned about the pharmacy trips. Didn’t realize that before.
Okay, for those who are too simplistic on this, here are some scenarios.
I leave work early for a doctor appointment. The doctor is on my route home, roughly. After the doctor appointment, I head straight to my pharmacy where a prescription is waiting. Afterwards, I drive to a restaurant where family and friends are meeting for dinner. Afterwards, I drive a slightly intoxicated friend home before driving home myself. What is the mileage calculation?
I leave home to drive to the home of a friend, who will drive me to the doctor in his car. The friend’s house is not on the way to the doctor’s office. The friend takes a detour to pick up another concerned friend who will accompany us to the appointment. This is all reversed after the appointment. What is the mileage calculation?
Thanks. The cancer is very small and at the lowest, slowest-growing stage, so I have time at my relatively “young” age.
I have to go 200 miles round-trip 5 times every 2-3 months for treatments. Just note the date and distance. Thing is unless you have a lot of expenses, you can’t deduct them due to the base 7.5 or 10% of income.
From home to the doctors and back to home. Use a constant so you don’t go nuts.
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