Documents required to back-up medical expense deductions?

[kptx08]

What documents are considered adequate back-up for the medical expense deduction?

This question is specifically for how to document medical services. I understand that I don't need to send proof of payment for medical services with my tax return filing but that I need to have back-up if I'm ever audited. 

1. The Explanation of Benefits issued by my health insurance showing the provider name, date of service, service type, and the amount I pay along with other amounts (billed, paid by insurance, deductible, etc.).

2. Statement from the provider showing the name of service provided, amount billed, amount paid by insurance, amount of PPO discount, and any payments made by me.

3. My credit card or bank statements showing provider name, date paid, and amount. (This provides proof of payment.)

[DaveF1006]

Yes, these are all excellent paper trails for documenting your medical expenses and the IRS does like paper trails that substantiate each other. It makes their job to audit much easier.

[kptx08]

Thank you for your reply, Dave. However, in the interest of not overdoing documentation, can I get by with just copies of the EOBs or do I need to have the provider statements that show my payments made as well? I don't want to spend more time on this than necessary. This is the first time I'm itemizing.

[Vanessa A]

Your EOB would be enough along with your credit card statements showing proof of payment.  You just need to show that you had the bill, paid the bill and what the bill was for. 

[kptx08]

Hi Vanessa,

Thanks for your reply! Regarding proof of payment:

a. If I paid the provider by check, would I need to provide a copy of the cancelled check as proof of payment? Or, would a copy of the check and the corresponding bank statement showing the check paid suffice?

b. If I paid the provider by credit card, I'd need to have the corresponding credit card statement that shows that transaction?

c. If I have a statement from the provider that shows what the charges were for, the amount that insurance paid, and the amount that I paid by whatever means, would that satisfy the requirement to document the charges and my payment? (Instead of having to have copies of checks, bank statements, credit card statements, etc.)

[Vanessa A · Accepted solution]

a. A copy of the check and corresponding bank statement would suffice.

b. Yes, the corresponding credit card statement would be needed

c.  Yes, if you have a receipt from the provider that would be all you needed to show you were billed a certain amount and you paid a certain amount. This is the easiest way to show payment, but depending on your medical bill types and hospital billing procedures, you do not always get a receipt for your payment.  In that case, you credit card statements or bank statements with a copy of your check would be proof. 

[kptx08 · Accepted solution]

Hi Vanessa,

Thank you so much for clarifying all of that! I appreciate your help. Now I know what to do!