Health and medical insurance is deductible when the policy covers medical and dental care expenses, including hospitalization, surgical fees, X-rays, laboratory tests, medical examinations, prescription drugs, eye exams and glasses or contact lenses, or eye surgery. Insurance that covers free-choice medical service is also deductible. And certain qualified long-term care insurance contracts may also be deducted. In long-term care contracts, there is a limit on the amount that can be deducted, based on the age of the person for whom the premiums were paid.
Life insurance is not considered medical insurance and therefore cannot be deducted. Also, policies that cover the loss of limb, sight, etc, are not deductible, although the cost of an artificial limb, or for eye surgery would be deductible medical expenses. Insurance policies that pay for loss of earnings, or a guaranteed amount for a defined period while you are hospitalized for sickness or injury are not deductible.
The social security tax you pay for coverage under Medicare A is not a deductible medical expense, but the cost of supplemental medical insurance coverage under Medicare B is deductible.
Transportation and Travel Expenses
The transportation expenses you incur in order to receive medical attention can be included as deductible medical expenses. These expenses include bus, taxi, train, or plane fares, or an ambulance service. The transportation expenses of a parent who must accompany a child who needs medical care can also be deducted. The travel expenses of a nurse or other person who accompanies a patient who is unable to travel alone and must travel in order to receive medical care are deductible. If the travel is to another city, you may be able to include up to $50 per night for lodging for each eligible person, provided there is no element of personal recreation or vacation in the travel. Meals are not deductible.
If you use your own vehicle to drive to the place where you receive medical service, you can deduct your actual expenses for gas and oil, or take the standard mileage rate. In either case you can add tolls and parking expenses.
In all cases, the transportation and travel expenses must be primarily for, and essential to, receiving medical services. Any personal portion of the travel expenses is not deductible. And a trip taken for vacation, for a rest, or for general improvement of health, even if recommended by a doctor, is not considered a deductible medical expense. The trip must be for actual medical attention and must be primarily for that purpose.