Can I write off taxes for my elderly parents' medical expenses abroad - is it possible?

Thanks for the explanation. Is there any special process for getting ITINs for parents who are elderly and not able to travel to the US? My dad especially can't travel because of his heart condition. And do the medical receipts absolutely have to be translated? Getting official translations for every receipt would be really expensive!

Your parents don't need to come to the US to get ITINs. You can submit their passport information with Form W-7 as supporting documentation. You can act as their agent in this process, especially given their medical conditions. Regarding translations, the IRS technically requires that all foreign language documents be translated, but you don't need certified translations for every receipt. You can prepare your own translations for routine documents like medical receipts. However, for major documents like hospital admission forms or surgical procedures, I would recommend getting proper translations. Keep both the original and translated versions in your records.

How does it handle foreign language documents? My parents are in Korea and all their medical stuff is in Korean. Does the tool translate or just help with the requirements?

I'm a bit skeptical about using a tool for something so complex. Did you still need to consult with an actual tax professional afterward? I tried using TurboTax for my foreign property income last year and it was a disaster.

It doesn't translate the documents itself, but it does tell you exactly which documents need translation and gives you guidelines on how to handle that process. It really helps you understand what's required versus what's nice-to-have in terms of translations. I actually didn't need to hire a separate tax professional after using the tool. I was worried about that too, but it was comprehensive enough that I felt confident filing on my own. It's much more specialized for these international situations than TurboTax - it asked me questions I wouldn't have even thought about and guided me through the specific IRS rules for foreign dependents.

How does this actually work? Do they have some special access to the IRS or something? I've been on hold so many times I've given up trying to call.

Yeah right. No way they can get through when no one else can. The IRS phone lines are completely jammed all the time. This sounds like a scam to me.

They don't have special access in terms of a different phone number or anything. What they do is use an automated system that constantly redials and navigates through all the prompts for you. When they finally get through to a human agent, they connect you to the call. It's definitely not a scam. I was super skeptical too - I had been calling for literally weeks trying to get specific questions answered about my parents' ITINs. I was ready to give up until I tried this. The difference is they have technology that can stay on the line and keep trying indefinitely, while most of us give up after an hour or so on hold. When I got connected, it was a regular IRS agent who answered all my questions about foreign dependent documentation.

Wait really? The first commenter didn't mention anything about this residency requirement. My parents are in Thailand - does this mean I can't claim them no matter what? This is really disappointing if true.

There's a special test for foreign dependents called the "resident of contiguous countries or qualifying relative" requirement. For non-US citizens, this traditionally limited dependency claims to residents of Canada or Mexico, but some tax treaties expand this. Thailand doesn't have the right kind of tax treaty with the US for this purpose, unfortunately. However, you still have options. While you likely can't claim your parents as dependents, you may still be able to deduct medical expenses you pay directly to medical providers for their care under certain circumstances. The key is that you would need to pay the medical providers directly rather than sending money to your parents who then pay for their care.

Form 2555 is for Americans living abroad reporting their own income, not for claiming foreign dependents or their medical expenses. I think you might be confusing forms.

This is really helpful advice about paying providers directly - I hadn't thought about that approach. Do you know if there are any specific requirements for how these direct payments need to be documented? For example, would I need to get receipts in English, or would the bank transfer records showing payment to the Thai hospital be sufficient documentation for the IRS? Also, regarding the HSA option you mentioned - I do have an HSA through my employer. Are you saying I could potentially use HSA funds to pay for my parents' medical expenses abroad even if I can't claim them as dependents? That would be a huge help if it's allowed.

For direct payments to foreign medical providers, you'll want to maintain comprehensive documentation. Bank transfer records showing payment to the Thai medical facilities are essential, but you should also request itemized receipts from the providers detailing the services rendered. While the IRS technically prefers English translations, for routine medical receipts, you can provide your own translations alongside the originals - just ensure they're accurate and detailed. Regarding HSA usage for parents' medical expenses abroad - this is where it gets tricky. Generally, HSA funds can only be used tax-free for qualified medical expenses of you, your spouse, or your dependents. Since your parents likely don't qualify as dependents due to the Thailand residency issue, using HSA funds for their care would typically result in taxes plus a 20% penalty on the distribution. However, there's a potential workaround: if you're paying for medical care that directly benefits your own health (like mental health counseling related to caregiving stress), those expenses might qualify. But for your parents' direct medical care, HSA usage would likely be problematic without the dependent relationship. I'd definitely echo the recommendation to consult with an international tax specialist before making any major decisions, especially given the complexity of foreign medical expense rules.