Taxes

[Guest Mountainman]

I have been told that all food for a celiac is tax deductable. Is this true? Or is it just health foods? If it is deductable, where do I find info to support this? Thanks!!

Ed

[tarnalberry]

I have been told that all food for a celiac is tax deductable. Is this true? Or is it just health foods? If it is deductable, where do I find info to support this? Thanks!!

Ed

If you are itemizing your deductions, and you can itemize your medical deductions (they are greater than 7.5% of your AGI (I think it's 7.5%)), then you can deduct the additional cost of the foods necessary for maintaining a gluten free diet above the cost of a non-gluten free diet. So, for instance, you could deduct the added cost of gluten free bread that is above the cost of regular bread, or the full cost of xanthum gum (since it's not used at all in non gluten free baking). You need to keep meticulous records, and you may need to submit a doctor's diagnosis to the IRS to be able to claim this deduction. Some accountants believe that claiming this deduction increases your chances for an audit, and there has been discussion that the IRS is trying to do away with this deduction.

[StrongerToday]

My good friend is a CPA and I asked her about this. She said technically it's true, but she wouldn't recommend it. There's too much subject to interpretation. You don't *have* to have the gluten-free brownies or breads. And meat and veggies are already gluten-free.

She recommended a better way to handle this is to check into your company's flex spending account and take tax advantages easier by going this route instead.

[Smunkeemom]

My good friend is a CPA and I asked her about this. She said technically it's true, but she wouldn't recommend it. There's too much subject to interpretation. You don't *have* to have the gluten-free brownies or breads. And meat and veggies are already gluten-free.

She recommended a better way to handle this is to check into your company's flex spending account and take tax advantages easier by going this route instead.

I agree, and I am a tax preparer. Technically you can deduct the cost above what's "normal" as a medical expense for foods that are gluten free if your doctor puts you on a gluten free diet, such as gluten free bread that costs $6.00 when regular is $2.00, you deduct $4.00

You don't have to send in your reciepts or a doctor's note or anything, but you need to keep them on record in case you ever get audited. There are flags on tax returns that make them more likely to get audited and I have heard that medical deductions aren't one of them, but it's likely that you won't be able to come up with more than the 7.5% anyway, which is why I recomend taking advantage of the flex spending account if you can, it's just makes better money sense.