Can You Deduct Medical Care in Latin America on U.S. Taxes? What IRS Publication 502 Says

When you pay for surgery or dental work out of pocket abroad, a reasonable question is whether any of it reduces your tax bill. For U.S. taxpayers, the answer depends on IRS rules for medical expenses, which are set out in IRS Publication 502 (for 2025 returns). This article walks through how those rules apply to care in Mexico, Colombia, Costa Rica and elsewhere in the region. It is general information, not tax advice; a tax professional can apply the rules to your situation.

The Basic Rule: Itemizing and the 7.5% Threshold

The medical expense deduction is an itemized deduction claimed on Schedule A. According to Publication 502, you can deduct only the part of your qualifying medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI).

Two consequences follow:

• If you take the standard deduction instead of itemizing, medical expenses do not reduce your tax at all.
• Even if you itemize, only the amount above the 7.5% threshold counts. A taxpayer with an AGI of $80,000, for example, would need more than $6,000 in qualifying medical expenses in the year before any deduction begins.

One irony of medical travel is that lower prices abroad make it less likely you will clear the threshold. A procedure that would have pushed you over the line at U.S. prices may fall below it in Latin America.

Does It Matter That the Care Was Abroad?

Publication 502 defines medical care by what it is, not where it happens. The publication does not set out a separate rule for care received outside the United States. In practice, that means the key question for treatment in Latin America is the same as for treatment at home: is it qualifying medical or dental care?

There is one location rule worth knowing. To include a dependent's medical expenses, the dependent generally must be a U.S. citizen or national, or a resident of the United States, Canada or Mexico, with an exception for certain adopted children. That matters for families with relatives in Latin America.

Cosmetic Procedures Are Generally Excluded

This is the most important limit for many medical travelers. Publication 502 says that cosmetic surgery is generally not deductible when it is aimed at improving appearance and does not meaningfully promote the proper function of the body or prevent or treat illness. The IRS gives face lifts, hair transplants, electrolysis and liposuction as examples.

There are exceptions. Surgery to improve a deformity from a congenital abnormality, an injury from an accident or trauma, or a disfiguring disease can qualify. Breast reconstruction after a mastectomy for cancer is specifically includible.

Travel and Lodging

Transportation

Publication 502 allows amounts paid for transportation that is primarily for and essential to medical care, including plane, train, bus and taxi fares. If you fly to Bogotá or Guadalajara for a covered operation, the airfare can count. The IRS also notes that travel for purely personal reasons to another city for an operation does not qualify, so the medical purpose has to be the primary reason for the trip.

Lodging

Lodging away from home can be included only when all of these apply: it is primarily for and essential to medical care; the care is provided by a doctor in a licensed hospital or equivalent facility; the lodging is not lavish or extravagant; and there is no significant element of personal pleasure, recreation or vacation. The amount is capped at $50 per night for each person. A person who must accompany the patient can also be counted, so a parent traveling with a sick child could include up to $100 per night.

Meals and side trips

Meals are not included under the lodging rule. Days added for sightseeing are personal expenses. If you combine surgery with a vacation, only the medically necessary portion can count, and a trip with a significant vacation element may put the lodging deduction at risk entirely.

Medicines Bought Abroad

Medicines have their own rules. Publication 502 says you generally cannot include the cost of a prescription drug brought in or shipped from another country unless it was legally imported. However, you can include a prescribed drug that you buy and use in another country if it is legal in both that country and the United States.

In practice, post-operative medicines you are prescribed and use while recovering in Colombia or Mexico can qualify if those conditions are met. Carrying a large supply home, or ordering refills by mail from abroad, is a different situation and generally will not qualify.

Records That Support a Deduction

The IRS may ask you to substantiate expenses. Foreign-language invoices and payments in foreign currency add complexity, so build your file as you go:

1. Itemized invoices from the hospital, surgeon and anesthesiologist, showing dates and services. Ask for English versions or translations if possible.
2. Proof of payment such as card statements or bank records.
3. Currency conversion: note the U.S. dollar amount charged on your card, which is usually the clearest evidence of what you paid.
4. Medical records showing the diagnosis and the procedure, especially for anything that could be mistaken for cosmetic.
5. Travel records: boarding passes and itineraries showing the dates match the treatment.
6. Lodging receipts with dates and nightly rates.

HSAs, FSAs and Insurance Reimbursements

If you plan to pay from a health savings account or flexible spending account, remember that those accounts have their own rules and documentation requirements. Check with your plan administrator before using an HSA or FSA card abroad, since some foreign merchants are coded in ways that cause a card to be declined or a claim to need extra documentation.

You cannot deduct expenses that are reimbursed by insurance or paid with tax-free account money. If a travel insurer or your health plan pays part of the bill, only your unreimbursed portion can count.

Worked Example (Illustrative Only)

Consider a hypothetical taxpayer who itemizes, has an AGI of $60,000, and travels to a Latin American city for a knee replacement that is medically necessary. Their 7.5% threshold is $4,500. They gather their qualifying costs for the year: the hospital and surgeon invoices, the airfare for the medical trip, and lodging at the $50 per night cap for the nights required for care. If the total of those qualifying costs, plus any other medical expenses that year, is above $4,500, only the excess is deductible. The figures here are for illustration; they are not estimates of actual procedure costs.

Common Mistakes

• Assuming any procedure abroad is deductible, including cosmetic surgery.
• Counting full hotel bills rather than the $50-per-night-per-person cap.
• Including meals, tours or extra vacation days.
• Deducting expenses paid from an HSA or reimbursed by insurance.
• Keeping only summary receipts instead of itemized invoices.
• Forgetting that the deduction only helps if you itemize.

Planning the Trip With Taxes in Mind

You should never choose a treatment or a destination for tax reasons, but a little planning can keep a legitimate deduction intact. Book the trip around the treatment dates, not the other way round, and keep any vacation days clearly separate, with their own receipts. Choose modest lodging close to the hospital rather than a resort. Ask the clinic in advance whether it can issue itemized invoices that name the procedure and diagnosis, and whether it will do so in English. If you are traveling with a companion because you need help, ask your doctor to note that in your records.

Timing within the tax year can also matter. Because only expenses above the 7.5% threshold count, some taxpayers find that grouping planned medical costs into a single year makes the deduction more useful. That is a question for a tax professional, who can look at your full picture.

When to Talk to a Tax Professional

Get advice if your care might be partly cosmetic and partly medical, if you are claiming lodging for a long recovery, if you are paying for care for a relative who lives abroad, or if large amounts are involved. A professional can also tell you whether itemizing makes sense at all in your situation.

Frequently Asked Questions

Is dental work in Mexico tax deductible?

Dental treatment that counts as medical care, such as implants or fillings, can generally be included in medical expenses wherever it is performed. It only reduces your tax if you itemize and your total medical expenses exceed 7.5% of AGI.

Can I deduct a tummy tuck or BBL done in Colombia?

Generally not. The IRS treats procedures aimed mainly at improving appearance as non-deductible cosmetic surgery, unless an exception applies, such as correcting a deformity from trauma, a congenital condition or disfiguring disease.

Can I deduct my companion's flight?

Transportation for a person who must travel with the patient for medical reasons may be includible, and the lodging rule allows a companion to be counted up to the same $50-per-night limit. Check the specifics with a tax professional.

How do I convert foreign-currency invoices?

Use the U.S. dollar amount actually charged to your card or bank account where possible, and keep the original invoice alongside it. That gives a clear record of what you paid.

Can I deduct medicines I bring back from Latin America?

Generally not, unless they were legally imported. Medicines prescribed and used while you are abroad can count if they are legal in both countries.

Do I need English translations of my receipts?

Publication 502 does not specifically address translations, but clear, itemized records are easier to substantiate. Asking the provider for English-language invoices is a sensible precaution.

This is a plain-language summary of IRS guidance, not tax advice. A qualified tax professional can tell you how the rules apply to your return.