Claiming International Expenses on Taxes?

[caritobito]

Hello. I hope I am posting in the correct place but hopefully someone can help me. My wife and I tried for over two years. No luck. Did the injections several times no luck. Did IUI once no luck. All tests normal for both for everthing. Basically told no idea just one of those things.

Anyhow we decided to go with IVF and had the recommendation of ICSI from two Drs. simply because everyt est we did for both of came back normal several times. So we are currently in South America (Lima, Peru) undergoing treatment and looking at extraction in a few days followed by transplantation a few after that.

OK. I know I can claim some of this on my taxes and am keeping receipts for everything, airfare, drugs, clinic visits etc etc. BUT everything I have is done in their native currency. I asked if they could do it in US dollars and was told no. Soooo, does anyone have any experience on this???

I know I have to convert everything to US dollars. I read somewhere that maybe I need to use the "Average Yearly Currency Exchange Rate". Found another post that said to track daily rates as well. Urgg. Obviously the Average rate method would be much simpler. Anyone know if I also need to have Certified Translation services done for every receipt? I am using a Credit Card as a secondary method way to have it documented but there was one cost the main one that I paid cash for. So not sure if I can just translate the little bit myself or not.

I found litle info on the IRS website with specific info and I dont have a CPA working for me LOL.

Can somone help me while I am still here that has been through this internationally from the US even if it was a different country and you already filed US taxes once???

Thanks

[dg1]

I would just use the exchange rate at the date payment was made. So if you paid 10,000 dollars of peruvian currency on 6/26/2012, I would go on oanda.com and use the exchange rate for 6/26/2012. The chances that the IRS is going to contest your medical expenses is slim unless you are extremely wealthy. Just keep all your receipts and keep track of what exchange rates you used, so if you do get audited you have backup. The treasury rates you mentioned are for the form 8938, not medical expenses.