Celiac.com Sponsor (A1):



Celiac.com Sponsor (A1):


  • Join Our Community!

    Ask us a question in our celiac / gluten-free forum.

  • Record is Archived

    This article is now archived and is closed to further replies.

    Scott Adams

    Tax Deduction for Gluten-Free Foods as a Medical Expense for Diagnosed Celiacs Only

    Scott Adams
    0
    Reviewed and edited by a celiac disease expert.

    The following guidelines were received from the Oct. 1993 CSA/USA National Conference in Buffalo, NY:



    Celiac.com Sponsor (A12):




    1) You can claim only the EXTRA COST of the gluten-free product over what you would pay for the similar item at a grocery store. For example, if wheat flour costs $0.89 per 5 lbs. and rice flour is $3.25 per 5 lbs., the DIFFERENCE of $2.36 is tax deductible. You may also claim mileage expense for the extra trip to the health food store and postal costs on gluten-free products ordered by mail.

    2) The cost of xanthan gum (methylcellulose, etc.) used in gluten-free home baked goods is completely different than anything used in an ordinary recipe, so in the opinion of the IRS, the total cost of this item can be claimed.

    3) Save all cash register tapes, receipts, and canceled checks to substantiate your gluten-free purchases. You will need to prepare a list of grocery store prices to arrive at the differences in costs. You need not submit it with your return, but do retain it.

    4) Attach a letter from your doctor to your tax return. This letter should state that you have Celiac Sprue disease and must adhere to a total gluten-free diet for life.

    5) Under MEDICAL DEDUCTIONS list as Extra cost of a gluten-free diet the total amount of your extra expenses. You do not need to itemize these expenses.

    Suggestions:

    1) You may want to write the Citations (as given below) on your tax return. Always keep a copy of your doctors letter for your own records.

    2) Your IRS office may refer you to Publication 17 and tell you these deductions are not permissible. IRS representatives have ruled otherwise and this is applicable throughout the US Refer them to the following Citations:

    • Revenue Ruling 55-261
    • Cohen 38 TC 387
    • Revenue Ruling 76-80, 67 TC 481
    • Flemming TC MEMO 1980 583
    • Van Kalb TC MEMO 1978 366
    0

    User Feedback

    Recommended Comments



    My sister said I could, then when I asked my tax preparer she said no. I'm back to saving my receipts.Thank you, and I have to thank the saleslady for telling me about your website.

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter

    I'm glad to see we can claim this food. It's not cheap. I only hope I can do it in my next taxes. I spend a lot on food and also I have Type 1 diabetes. It would help me a very much.

    Thank you

    Suzanne

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter

    I'm new to the celiac diet. I went shopping for Gluten Free food today and was shocked by the high prices of everything. Glad to hear you can take a tax deduction, but you can only claim medical expenses if they are 5% of your salary for the year.

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter

    Thank You so much for putting this tax deduction info out here on your site. I have had Celiac for 2 yrs now and did not know this. Sometimes I don't purchase the foods I need because of the price. Now I will purchase the foods I need thanks to your article. I love your website.

    God Bless You,

    Peggy

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter

    I believe this is in reference to the use of an HSA or FSA account. Here is a link to the IRS website explaining Qualified Medical Expenses.

     

    http://www.irs.gov/publications/p502/ar02.html#en_US_publink100014757

     

    Which states:

    'You can deduct only the amount of your medical and dental expenses that is more than 7.5% of your adjusted gross income (Form 1040, line 38). '

     

    However with an HSA account you can debit anything that is labeled as a Qualified Medical Expense.

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter

    I'm not only intolerant to gluten but also to dairy, soy and now I think cinnamon, so I have to really watch what I eat. My job keeps me on the road over 225 days a year.

    I am intolerant to gluten, dairy, soy, oil like butter and mayo...I think intolerance grows...still there is a lot to eat and enjoy...PF Chang's restaurant is wonderful to go out to eat... good luck

    Share this comment


    Link to comment
    Share on other sites

    Join eNewsletter




    Guest
    This is now closed for further comments

  • About Me

    Scott Adams was diagnosed with celiac disease in 1994, and, due to the nearly total lack of information available at that time, was forced to become an expert on the disease in order to recover. In 1995 he launched the site that later became Celiac.com to help as many people as possible with celiac disease get diagnosed so they can begin to live happy, healthy gluten-free lives.  He is co-author of the book Cereal Killers, and founder and publisher of the (formerly paper) newsletter Journal of Gluten Sensitivity. In 1998 he founded The Gluten-Free Mall which he sold in 2014. Celiac.com does not sell any products, and is 100% advertiser supported.


  • Celiac.com Sponsor (A17):
    Celiac.com Sponsor (A17):





    Celiac.com Sponsors (A17):




  • Related Articles

    Howard J. Kass, CPA
    This is a good summary of the proper tax treatment for the additional costs of complying with a gluten-free diet, under a doctors direction. Let me offer a couple of points of clarification and amplification.
    Revenue Ruling 76-80 is more on point in that it specifically discusses the deductibility of the additional costs one incurs in purchasing a special form of a product versus the normal cost of the non-special version.
    Additionally, if one has to purchase items that they would not otherwise purchase if not for the underlying medical condition (such as xanthan gum) then the full cost of such items are deductible.
    It is important...

    Howard J. Kass, CPA
    The information posted by Sandra Leonard that she received from the American Celiac Society was factually correct, and is essentially the same information that can be found in my article on Scott Adams Web site (www.celiac.com). I think it is important, though, to say that only a limited number of people are going to actually benefit from compiling all the information required to take the deduction because of the limitations in the Internal Revenue Code for deducting medical expenses.
    In order to take a deduction for medical expenses, the total amount incurred, NET OF INSURANCE REIMBURSEMENTS, must exceed 7.5% of Adjusted Gross Income (AGI...

    Howard J. Kass, CPA
    Celiac.com 03/05/2012 - When I first wrote about the tax treatments available to diagnosed Celiacs for the additional costs they incur by following a Gluten-Free diet fifteen years ago, the law was pretty well established and there were no significant changes in the works. The advent of Section 125 plans shortly thereafter, also known as Flexible Spending Arrangements (FSA) added a new twist to the quest for tax deductions. With all the hoopla that has taken place in the last year, both with health care reform and tax legislation, what has changed?
    Overview of the Medical Expense Deduction
    Before I talk about what has changed, it is important to...

    Jefferson Adams
    Celiac.com 03/21/2014 - According to the National Foundation for Celiac Awareness, the burden of celiac disease can cost an extra $1,000 to $2,500 per year. However, many people who eat gluten-free diets as treatment for celiac disease or other medical conditions are eligible for tax breaks.
    Those who do eat gluten-free due to medical conditions will be happy to learn that both the Internal Revenue Service and the Canada Revenue Agency list gluten-free food as an eligible medical expense. That means that filers may be eligible for tax relief for gluten-free-related food expenses.
    For example, according to the Canada Revenue Agency website, celiac...