Medical Expenses - Meaning of "Medical Care Facility"

[BaliThai]

I am trying to understand the definition or meaning of "in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital" for purposes of medical expense deductions for lodging and transportation. I have had to travel from our rural community with my daughter for her to see physician specialists in communities out of our area. While the physicians are affiliated with a university hospital system, some of the appointments were in their offices which were not physically located in the hospital. It seems to me that they are functionally equivalent to the appointments that were in offices located within the hospital complex, but how does the IRS view that?

[Vanessa A · Accepted solution]

 Since you are traveling to see a licensed medical doctor at a doctors office (which is a medical care facility) and staying for that reason, you can deduct up to $100 per night while traveling for medical purposes with your daughter ($50 for you and $50 for her). Based on the information you have provided, your travel would meet the criteria below and you would be able to claim these expenses as medical expenses.

According to pub 502

You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. 

• You can include the cost of such lodging while away from home if all of the following requirements are met.
• The lodging is primarily for and essential to medical care.
• The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital.
• The lodging isn't lavish or extravagant under the circumstances.
• There is no significant element of personal pleasure, recreation, or vacation in the travel away from home.

The amount you include in medical expenses for lodging can't be more than $50 for each night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals aren't included.

Don't include the cost of lodging while away from home for medical treatment if that treatment isn't received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging isn't primarily for or essential to the medical care received."

Be aware that your medical expenses are only deductible for the amount that is in excess of 7.5% of your AGI. This means if your AGI is $100,000 and your medical expenses are $10,000, you would only be able to include $2,500 in your medical expense itemized deduction. 

Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. In order to benefit from the Itemized deductions, they would need to be greater than your standard deduction of $19,400 for head of household or $25,900 for married filing a joint return.