Medical savings account. You may be able to make deductible contributions to a medical savings account (MSA). If you are an employee of a small business (fewer than 50 employees), or self-employed and covered only by a high deductible health plan, you may be eligible to have an MSA. You deduct MSA contributions on Form 1040, line 25, not on Schedule A as a qualified medical expense. See Publication 969, Medical Savings Accounts (MSAs), for more information.

Qualified long-term care insurance and expenses. Qualified long-term care insurance contracts are generally treated as accident and health insurance contracts. You can include in medical expenses unreimbursed qualified long-term care expenses, and within certain limits, premiums paid for qualified long-term care insurance. See Publication 525, Taxable and Nontaxable Income, for more information.

Standard mileage rate. The standard amount you can deduct for the use of your car for medical reasons is now 10 cents a mile.

Previous | First | Next

Publication 17 | 1998 Tax Year Archives | Tax Help Archives | Home