IRS Auditing of Medical Deductions

by Shane Hall ; Updated July 27, 2017

IRS rules allow taxpayers to deduct medical expenses that exceed 7.5 percent of a taxpayer's adjusted gross income (generally wages plus other income, such as interest and dividends). Although deductions for medical expenses are not an automatic red flag for an IRS audit, the government is auditing more returns. This means taxpayers should carefully document their expenses.

Audits Increasing

According to a CNN report in 2008, the IRS has increased the number of returns it audits.

Considerations

Although itemized deductions, such as for medical expenses, do not automatically trigger an IRS audit, the more deductions you claim, the greater your chances of being audited.

Documentation

If you claim a deduction for medical or dental expenses, keep detailed records to document those expenses. Be sure to save all receipts, not just canceled checks.

IRS Rules

IRS Publication 502 covers deductions for medical and dental expenses. It outlines what expenses taxpayers can deduct on their tax returns.

Audit Advice

If you receive notice of an audit, take it seriously but do not panic. Many audits do not even require a face-to-face meeting, but only request additional information. Remember, keep records of all medical and dental expenses if the IRS questions these.

Suggestion

Be sure to keep the names and contact information for any physicians who treated you. Contact their offices if you need documentation of services or treatments you received during the year.

About the Author

Shane Hall is a writer and research analyst with more than 20 years of experience. His work has appeared in "Brookings Papers on Education Policy," "Population and Development" and various Texas newspapers. Hall has a Doctor of Philosophy in political economy and is a former college instructor of economics and political science.