Tax Deductions for travelTax Deductions

A tax deduction lowers the dollar amount of taxable income. For example, if your total income is $50,000 but you have $5,000 in tax deductions, you would calculate your tax liability on $45,000. Listed below are some types of tax deductions. There are others. Speak with a tax professional to find you what other tax deductions you might be eligible to take.

Accommodations. Qualified (IRS-approved) costs associated with installing special equipment or modifying your home.

Lodging. Qualified costs associated with travel away from home to care for your child.

Medical. Qualified costs associated with maintaining and improving your child’s health. These costs must be itemized (listed on the tax return). The total amount of these costs must be greater than seven-and-a-half percent of your adjusted gross income (AGI). Your AGI is the total amount of income reported on your income tax return less certain allowable deductions, such as some business expenses, IRA contributions, student loan interest, and paid alimony.

Example:

If your AGI is $50,000 you would need more than $3,750 in IRS-approved medical expenses in order to take a tax deduction.

Math: $50,000 x .075 (7.5%) = $3,750.

Travel. Qualified costs associated with travel in caring for your child, such gas and parking expenses incurred while traveling to and from the doctor’s office may be tax deductible. Some restrictions may apply, but generally you may take travel deductions if your child is:

  • Under 19 years of age.
  • Under 24 years of age if a full-time student.
  • Any age if permanently and totally disabled (see Internal Revenue Service. “Publication 502: Medical and Dental Expenses.” November 10, 2009).

For more information on whether you may deduct travel expenses, speak with a tax professional or contact the IRS:

Call 1-800-829-1040 (Voice) or 1-800-829-4059 (TDD)
Visit www.irs.gov and search on “Publication 502”

 

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