But the UK allows a generous amount of tax-deductible expenses which can significantly reduce the amount of tax due.

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You put tax-deductible money into an HSA, same as you would into an IRA. The HSA is coupled with a health insurance policy with a high deductible--and the amount you can put into the account is exactly equal to the deductible on the insurance, up to a limit.

FORBES: Saving for Your Health

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev.

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It must make the policyholder entirely responsible for all medical bills up to the amount of the deductible, with certain exceptions (such as for preventive services like cancer screening and prenatal care).

FORBES: Saving for Your Health

These lump sum payments are neither taxable to the recipient nor deductible to the payor, but the paying spouse will typically try to negotiate a lump sum amount that takes into account the loss of deductibility.

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