Tax Deduction

Several years ago, the IRS determined that obesity is a disease in and of itself.  This may lead to significant tax benefits for patients contemplating bariatric surgery.

The details about this tax break are available in IRS publication 502, Medical and Dental expenses. To benefit from this deduction it will be necessary to itemize your expenses. The deduction is only applicable when expenses exceed 7.5% of one’s Adjusted Gross Income. Some aspects of medical treatment that should qualify for deduction include:

1. Bariatric surgery: By definition, this procedure is undertaken for the treatment of obesity as a medical problem. New Dimensions will document your diagnosis as such.
2. Other Weight-loss programs: A weight-loss program is a deductible medical expense if undertaken as treatment for a disease diagnosed by a physician. The disease can be obesity itself or another disease, such as hypertension or heart disease, for which the doctor directs you to lose weight. It is best to obtain a written diagnosis before starting a weight-loss program. Deductible expenses include fees paid to join the program and to attend periodic meetings; however, the cost of low-calorie food that you eat in place of your regular diet isn’t deductible. The cost of membership at a gym is also not deductible.
3. Transportation: The cost of getting to and from medical treatment is a medical expense. This includes taxi fares, public transportation, and the cost of using your own car.  Standard calculations for vehicle mileage can be obtained from an accountant, plus tolls and parking  Alternatively, you may use your actual costs such as for gas and oil (but not general costs such as insurance, depreciation, or maintenance).
4. Health insurance premiums: The cost of health insurance is a medical expense. This item, by itself, can total thousands of dollars a year. Even if you are receiving health coverage by your employer, you may be contributing a portion of the premiums from each paycheck. Medical expenses include premiums paid on long-term care insurance, subject to specific dollar limits (depending on age).
5. Dependents and others: If you cover the medical costs of dependents (your children, for example), these can be deducted. Additionally, if you are covering the costs of an individual who would qualify as your dependent except that he has too much gross income to qualify (or files jointly), for example, an elderly parent or grandparent, you may be able to deduct these costs as well. In most cases, the medical costs of a child of divorced parents can be claimed by the parent who pays them, regardless of who gets the dependency exemption.
6. Therapists, nurses, etc.: The services of individuals other than doctors can qualify as long as they relate to a medical condition and aren’t for general health reasons. For example, costs of the services of a physical therapist for several months after knee surgery would qualify. On the other hand, a general physical fitness counselor to tone you up wouldn’t. Amounts paid for certain long-term care services that are required by a chronically ill individual also qualify as deductible medical expenses.
7. Eyeglasses, hearing aids, dental work, psychotherapy, prescription drugs: Deductible medical expenses include the cost of glasses, hearing aids, dental work, psychiatric counseling, and other ongoing expenses in connection with medical needs. Purely cosmetic expenses (e.g., a “nose job”) don’t qualify, however. Prescription drugs (including insulin) qualify, but items such as aspirin and vitamins don’t. Neither do amounts paid for operations or treatments that are illegal under federal law (such as marijuana), even if state or local law permits the procedure or drug.
8. Smoking-cessation programs: Amounts paid for participation in a smoking-cessation program and for prescribed drugs designed to alleviate nicotine withdrawal are deductible expenses for medical care. However, non-prescription nicotine gum and certain nicotine patches aren’t deductible.
9. In summary, medical costs are fairly broadly defined for deduction purposes. As your health care provider we are providing this information for your information only. It is not intended to be professional tax advice. If you believe you may qualify for a deduction or have any questions, please consult your tax professional for help with this matter.

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