Deduct Medical Mileage for a Healthier Wallet

Did you know that every mile you travel for medical purposes is deductible come tax time? That’s right! The IRS allows you to deduct car travel mileage when it’s related to medical needs, and it’s a benefit that many people overlook. If you make trips to the doctor, pharmacy, or any other healthcare-related destination, it’s time to take advantage of this valuable deduction and give your budget a healthy boost. Maximize Tax Savings by deducting medical mileage for a healthier wallet.

I do not know why this had not occurred to me until just now. Driving along in my car to see my doctor and the idea suddenly popped into my head: “huh, wonder if these 22 miles of driving to see my doctor are something I can deduct. . .”. I fired up a chatGPT with the question and it said yes. I followed up with other sources to confirm the accuracy of this answer. Yes, travel mileage for medical purposes is deductible!

Disclaimer, so you don’t sue me. I’m not a certified financial planner nor tax advisor. Take everything you read here with that in mind, do your own research, and make your own decisions.

How the Deduction Works

The Internal Revenue Service (IRS) permits taxpayers to claim a medical expense deduction for eligible travel expenses. This includes mileage for medical appointments, treatments, and even transportation to get prescription medications.

All you have to do is keep track of your eligible medical travel and you can potentially reduce your taxable income, leading to a lower tax bill or a larger refund.

Why You Should Take Advantage of the Deduction

Here are two fantastic reasons why you should take advantage of this deduction:

1. Tax Savings: Every penny counts, and by deducting your medical travel, you can lower your taxable income. This could lead to a significant reduction in your tax liability or increase your refund, giving you more financial flexibility.
2. Encourage you to Use Healthcare Services: By making medical expenses more manageable, this deduction encourages you to prioritize your health. You’re more likely to schedule necessary check-ups, appointments, and treatments when you know that a portion of the travel costs can be offset.

How to Qualify for the Deduction

Keep these guidelines in mind to make sure that you qualify for this deduction:

1. Eligible Medical Expenses: The travel must be related to medical care for yourself, your spouse, or your dependents. This includes visits to doctors, dentists, hospitals, therapists, and pharmacies for prescribed medicines.
2. Itemization: You will need to itemize deductions on your tax return. This means choosing to detail your deductions instead of taking the standard deduction. If you own a home and have a mortgage, you are probably already itemizing.
3. Accurate Record Keeping: Keep a detailed record of your medical mileage. This includes the date of each trip, the purpose (medical appointment, pharmacy run, etc.), starting and ending odometer readings, and the total miles traveled.

Tips for Success

To ensure you get the most out of this deduction:

1. Keep it Simple: there are numerous apps available that can help you easily track your mileage, why complicate this simple task of logging. I use a simple Apple Numbers file (like Excel) that’s synced to all my devices through iCloud. This makes logging my drives very easy and low-friction. It takes literally a few seconds on my iPhone to log the drive. Come tax time, I can slice and dice the mileage report.
2. Keep Receipts: things like tolls, parking fees, and other evidence that show your travel was related to medical reasons.
3. Use a Ritual & Log Consistently: every time you get into a car, ask yourself if this trip is deductible. If it’s deductible, log it then and there! The short trips you make may not seem like much, but they add up over 12 months.

In conclusion, taking advantage of the medical mileage deduction is a smart move for both your health and your wallet. By prioritizing your medical needs and keeping careful records, you can maximize your tax savings and enjoy the peace of mind that comes with knowing your healthcare expenses are being recognized. So, the next time you hop in your car for a medical appointment, remember that you’re not just taking care of your health—you’re also taking care of your finances.