The IRS releases Publications 502 and 503 for use in preparing 2014 tax returns. Publication 502 includes medical expenses that are deductible on a taxpayer’s 2014 return and Publication 503 covers the requirements necessary to claim the dependent care tax credit.
Several changes in Publication 502 for 2014 include:
Some employers use Publication 502 as a guide for determining what expenses may be reimbursed under a Health FSA, HRA or HSA. Employers should use caution in using these publications beyond determining what expenses are deductible. The rules for reimbursing expenses from a health FSA, HRA or HSA may be different than for deducting the expenses on one’s taxes. For example, under Publication 502 an expense may be deductible the year in which it was paid; however, a Health FSA may only reimburse an expense in the year in which it was incurred.
Publication 502
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Publication 503
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