Medical mileage is a deduction which is easily overlooked but can become a very valuable deduction. For 2013, the standard IRS medical mileage deduction is 24¢ per mile but the rules are changing concerning the threshold for itemizing medical deductions. Beginning January 1, 2013, medical expenses not covered by insurance must exceed 10% of the taxpayer’s adjusted gross income (AGI). There is an exception to this limit temporarily for individuals age 65 years or older and their spouses. If the taxpayer or spouse is 65 years or older during 2013 the threshold remains at 7.5% of the AGI. This exception will remain in effect until December 31, 2016.
One of the easiest ways for medical mileage to be recorded is keeping a pocket calendar in the vehicle. Before starting on any medical trip, get into the habit of recording the destination of the trip, reason for the trip or the doctor involved and the odometer reading. This will require discipline but will soon become a valuable habit. Upon arriving, record the odometer reading again and the difference is the mileage driven. If no additional mileage is required to pick up prescriptions, go for additional testing or another appointment, this mileage may be doubled to record the return trip. At the end of the year it is a simple matter of adding up all the mileage recorded in the pocket calendar to obtain the total medical mileage for the year. Recording the medical miles might add an additional minute to the trip length plus the time necessary to add them up at the end of the year but this time spent definitely has the potential of becoming very valuable at income tax time.
Even though we are almost half way through this year, starting this procedure now may prove to be valuable when preparing your income tax return. Additionally, any medical trips taken prior to starting this procedure can be reconstructed by checking any medical bills and figuring the mileage based on subsequent trips. It is much better to have this information and not need it than not have it when it has the potential of saving money!