In the US, this is difficult. Your medical expenses have to be a certain percentage of your income. Then you have to show that a regular loaf of bread costs $3 and gluten-free costs $6 so you can use the $3 difference on the taxes. If everyone is eating the gluten-free bread, you might get caught trying to say 1 kid eats 2 loaves a week. The medical deductions often trigger an audit. You will want to consult a tax advisor (probably eating up the deduction) and read up on it to be safe..
People are scared of the IRS for no apparent reason. The IRS is in fact, not scary, as long as you aren't actually lying to them on purpose. Yes, read up on it. No, the deduction will not be eaten up by speaking with a tax adviser unless you are seeing the wrong people. If you already pay someone to do your taxes (and if you take deductions, you almost certainly do) they should offer a consultation on this for free or you can speak to them about it when you have your taxes done. If you already do deductions, adding this isn't a big deal. If you don't already, this won't get you to a place where doing deductions makes sense. Is it all sorts of complicated? Yes. But that shouldn't scare off people who are entitled to it. Honestly, I don't know where the myth came from that you are so much more likely to be audited because you took a medical deduction, but in my experience doing taxes (and from speaking with the owner of a local, long running firm who offers audit support) it simply isn't true. What flags you isn't the deduction itself but if your deduction is out of proportion for your income.
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Gluten free January 2012.
Tyramine free June 2012 - slowly getting a few foods back at a time.... scratch that
Low Histamine April 2013 - I swear this better be the last time I have to restrict my diet because giving up chocolate is the final straw
Iodine free briefly fall 2012
I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living. It's a way of looking at life through the wrong end of a telescope, which is what I do, and that enables you to laugh at life's realities. -- Theodor Geisel
I guess I was assuming she didn't already take medical deductions. Or use a tax advisor. I know that we have health insurance so we don't have a big enough % of income spent on medical. I maybe spend an average of $20-30 a month on things that are not naturally gluten-free. Then that pasta, flour, etc is mostly consumed by non-Celiacs. You can't deduct corn tortillas or hamburger even if I eat it.
Last year, at tax time there were some articles on the net or in the local paper about what flags you for auditing. Medical deductions of small things were one of them. If you keep good records and follow the rules, getting audited would just be a pain in the behind. If you are "winging" it or trying to claim 2 loaves of bread, 3 bags of cookies, etc a week for one 4 year old, you might be in trouble. I realize that that trouble just means they deny it and you have to pay what you saved, plus interest on that amount & maybe a small penalty and/or audit processing charge.
Its certainly something she should look into, if she thinks it might be helpful.
Just realized that the link said it was a 1993 ruling. Not sure if it is the same now or not. Why do US taxes have to be so complicated?
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I guess I was assuming she didn't already take medical deductions. Or use a tax advisor. I know that we have health insurance so we don't have a big enough % of income spent on medical. I maybe spend an average of $20-30 a month on things that are not naturally gluten-free. Then that pasta, flour, etc is mostly consumed by non-Celiacs. You can't deduct corn tortillas or hamburger even if I eat it.
Last year, at tax time there were some articles on the net or in the local paper about what flags you for auditing. Medical deductions of small things were one of them. If you keep good records and follow the rules, getting audited would just be a pain in the behind. If you are "winging" it or trying to claim 2 loaves of bread, 3 bags of cookies, etc a week for one 4 year old, you might be in trouble. I realize that that trouble just means they deny it and you have to pay what you saved, plus interest on that amount & maybe a small penalty and/or audit processing charge.
Its certainly something she should look into, if she thinks it might be helpful.
Just realized that the link said it was a 1993 ruling. Not sure if it is the same now or not. Why do US taxes have to be so complicated?
I hate hate hate the US tax code. It is so convoluted and complicated that frankly the IRS people don't even understand it. Even people who use things like H&R or such should be able to get free "advice" (I choke on that) when they get their taxes done. I've always worked for CPAs, and would take what any "professional" with a few hours training says with a grain of salt. When I say "already take deductions" I mean deductions in general. I guess it counts though for both medical and in general. I know it keeps me working 3 months a year, but I seriously support taking the entire IRS tax code and burning it.
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Gluten free January 2012.
Tyramine free June 2012 - slowly getting a few foods back at a time.... scratch that
Low Histamine April 2013 - I swear this better be the last time I have to restrict my diet because giving up chocolate is the final straw
Iodine free briefly fall 2012
I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living. It's a way of looking at life through the wrong end of a telescope, which is what I do, and that enables you to laugh at life's realities. -- Theodor Geisel
Didn't think I was going to stir up anything.. hehehe.. I worked for Jackson Hewitt the past 2 years and currently pursuing an Accounting degree. Red flags are when it doesn't makes sense with the income and honestly, I don't even know that we would spend enough in gluten-free food to be worth the extra time & effort to do it right, but.. it could be worth it. And yes, in between school lunches and breakfast, my son could easily eat 2 of those tiny gluten-free loaves But I plan on finding good recipes to bake it myself, we don't buy processed food right now, and I don't plan on starting with gluten-free. Maybe a bit at first to help out get a hang of it and while I find recipes, but processed food hasn't been part of our regular diet for a while. So yeah, by the time I figure out the 7.5% of our income, I don't know it'd be worth it. We'll see..
I think it's the "needs to be 7.5% of your income" thing that stops many of us. If you're making $50,000/yr, you need $3750 in after-insurance, eligible medical expenses to do medical deductions. I think many of us don't spend that much, even if you include co-pays, glasses, and gluten free food.
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Tiffanyaka "Have I Mentioned Chocolate Lately?" Inconclusive Blood Tests, Positive Dietary Results, No Endoscopy G.F. - September 2003; C.F. - July 2004 Hiker, Yoga Teacher, Engineer, Painter, Be-er of Me Bellevue, WA
Didn't think I was going to stir up anything.. hehehe.. I worked for Jackson Hewitt the past 2 years and currently pursuing an Accounting degree. Red flags are when it doesn't makes sense with the income and honestly, I don't even know that we would spend enough in gluten-free food to be worth the extra time & effort to do it right, but.. it could be worth it. And yes, in between school lunches and breakfast, my son could easily eat 2 of those tiny gluten-free loaves But I plan on finding good recipes to bake it myself, we don't buy processed food right now, and I don't plan on starting with gluten-free. Maybe a bit at first to help out get a hang of it and while I find recipes, but processed food hasn't been part of our regular diet for a while. So yeah, by the time I figure out the 7.5% of our income, I don't know it'd be worth it. We'll see..
Haha, I don't think anything is stirred up so to speak. I just think the myth that the IRS is something to be afraid of should be dispelled. And fear should never stop someone from taking a deduction they are rightfully entitled to. Also, totally off topic (well, sort of not really) isn't accounting awesome! I'm unable to pursue finishing my degree right now, but am hoping to head back to school by the fall 2014 semester.
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Gluten free January 2012.
Tyramine free June 2012 - slowly getting a few foods back at a time.... scratch that
Low Histamine April 2013 - I swear this better be the last time I have to restrict my diet because giving up chocolate is the final straw
Iodine free briefly fall 2012
I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living. It's a way of looking at life through the wrong end of a telescope, which is what I do, and that enables you to laugh at life's realities. -- Theodor Geisel
Agreed and yes, people think I'm nuts but I love accounting! Good luck with your goal
Oh, I love it too! (As long as someone else does it)
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Proverbs 25:16 "Hast thou found honey? eat so much as is sufficient for thee, lest thou be filled therewith, and vomit it." Job 30:27 My bowels boiled, and rested not: the days of affliction prevented me. Thyroid cyst and nodules, Lactose / casein intolerant. Diet positive, gene test pos, symptoms confirmed by Dr-head. My current bad list is: gluten, dairy, sulfites, coffee (the devil's brew), tea, Bug's Bunnies carrots, garbanzo beans of pain, soy- no joy, terrible turnips, tomatoes, peppers, potatoes, and hard work. have a good day! :-) Paul
