Can I claim tax deductions for my parents' medical expenses abroad if they aren't US citizens?

Yes, you may be able to deduct some of these expenses, but there are specific requirements you need to meet. First, to claim medical expenses for anyone, you need to itemize deductions on Schedule A rather than taking the standard deduction. Medical expenses are only deductible to the extent they exceed 7.5% of your adjusted gross income. For your parents to qualify as your dependents (which allows you to deduct their medical expenses), they must meet several tests: 1) They don't need to be US citizens or have SSNs, but they do need ITINs (Individual Taxpayer Identification Numbers) 2) You must provide more than half of their support for the year 3) Their gross income must be below the exemption amount 4) They cannot file a joint return except in certain circumstances. For documentation, keep all receipts translated to English, records of money transfers, and a log connecting payments to specific medical expenses. Have your sister keep detailed records of how cash was spent.

Just wanted to share my experience with a similar situation. I was struggling with documenting foreign medical expenses for my mom in Brazil until I found https://taxr.ai which literally saved me hours of headache. I uploaded all her Portuguese medical receipts and hospital bills, and their system automatically translated and categorized everything properly for US tax purposes. The best part was they extracted all the relevant information and formatted it exactly how the IRS wants to see it. They even helped me determine which expenses were deductible and which weren't. Much easier than trying to manually translate everything!

Just wanted to follow up and say I tried https://taxr.ai for my Korean parents' medical receipts after seeing it mentioned here. It was seriously impressive! Uploaded about 45 different receipts and hospital bills - the system recognized Korean characters perfectly and organized everything by expense category. It even flagged a few items that weren't deductible (like some herbal supplements my dad takes) which I would have incorrectly included. They generated a perfect expense report that I could attach to my tax return. Definitely using this again next year - so much better than my previous system of Google Translate screenshots and Excel spreadsheets!

If you're having trouble reaching the IRS to ask about your specific situation with foreign dependents (which can be complicated), I highly recommend using https://claimyr.com to get through to an actual IRS agent. I spent WEEKS trying to get clarification about my mom's medical expenses in the Philippines, always getting disconnected or waiting for hours. With Claimyr, I got through to the IRS in about 15 minutes! They hold your place in line and call you when an agent is available. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with gave me specific guidance about which forms I needed and confirmed that I could indeed claim my mom as a dependent despite her living abroad. Totally worth it instead of guessing or relying on possibly outdated info online.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I had questions about my father's medical expenses in India that I couldn't find clear answers to online. The service worked exactly as described. I received text updates about my place in line, and after about 35 minutes (during which I could go about my day instead of being stuck on the phone), I got a call connecting me to an IRS representative. The agent was able to confirm that I could claim my father as a dependent even without an SSN, but I needed to get him an ITIN and maintain specific documentation for his medical expenses. For anyone dealing with complicated international dependent situations like this, getting direct confirmation from the IRS provides peace of mind that you're filing correctly. Much better than guessing and worrying about potential audits later.

Something important nobody's mentioned yet - make sure you're only claiming expenses YOU actually paid for. If your sister in Thailand is using her own money for some costs (not just distributing cash you send), you can't claim those portions. Also, keep in mind that certain traditional or non-western medical treatments might not qualify as deductible medical expenses under IRS rules. The IRS has a pretty specific definition of what counts as medical care.

Just adding that if your parents live in a country that has a tax treaty with the US, there might be additional considerations. Worth checking if Thailand has specific provisions that could affect your situation.

One thing to be careful about is keeping very detailed records of the support calculation. The IRS may scrutinize foreign dependent claims more closely, so you'll want to document not just the medical expenses but ALL support you provide versus what your parents pay for themselves. Create a spreadsheet tracking monthly expenses: housing costs, utilities, food, medical care, transportation, etc. Include both what you send and what your sister handles on your behalf. This will help prove you're providing over 50% of their total support. Also, consider having your parents sign a statement (in both Thai and English) acknowledging that you provide their primary financial support. While not required, this can be helpful documentation if the IRS has questions about your dependent claims. The ITIN application process can take several months, so start that early. You'll need certified copies of their passports and possibly other identity documents from Thai authorities.

One additional consideration for your situation - since you're dealing with foreign medical expenses, make sure to convert all Thai baht amounts to USD using the exchange rates from the dates when the expenses were actually incurred, not just a single year-end rate. The IRS requires you to use the exchange rate from the transaction date for each expense. I'd recommend keeping a log of exchange rates alongside your expense records. You can use the IRS's yearly average exchange rates as published in their Revenue Procedures, or daily rates from sources like xe.com or the Federal Reserve. This becomes especially important if the Thai baht fluctuates significantly during the year. Also, be aware that if you're sending money through services like Western Union or bank wire transfers, those transaction fees are generally NOT deductible as medical expenses, even though they're necessary to get the money to your parents for their care. Only the actual medical and caregiving costs qualify. The good news is that caregiver expenses for your parents can be substantial and are generally deductible as long as the care includes some medical component (not just companionship). Make sure to get documentation showing the caregiver helps with medical needs like medication management, mobility assistance, or other health-related activities.