IRS Auditing of Medical Deductions
- According to a CNN report in 2008, the IRS has increased the number of returns it audits.
- 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.
- 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 Publication 502 covers deductions for medical and dental expenses. It outlines what expenses taxpayers can deduct on their tax returns.
- 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.
- Keep 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.