Monday, December 27, 2010

How to Get Tax Deductions for Food | eHow.com

The information below is from eHow.com.  It should also apply to Eosinophilic Esophagitis, and other eosinophilic disorders.  For those of us who are constantly doing food trials and have to buy a lot of alternative foods and ingredients, this is very helpful information.

To clarify, as it isn't listed in the article, as per Publication 502 on the IRS website, " You can include the cost of special food in medical expenses only if:

1. The food does not satisfy normal nutritional needs,
2. The food alleviates or treats an illness, and
3. The need for the food is substantiated by a physician.

The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet"

How to Get Tax Deductions for Food | eHow.com

If you have celiac disease where you must avoid eating gluten, you may be able to claim the expense of gluten free foods on your tax return. Read further to see if you might qualify for a tax deduction for your gluten free food purchases.
Difficulty: Moderate

Instructions

  1. Obtain an official diagnosis from your doctor in writing that you have celiac disease. Without that you cannot claim a tax deduction.
  2. Save all your records of gluten free purchases, including grocery receipts and canceled checks. Then compile a list of the regular cost of all the gluten free items you've bought. For example, if regular wheat flour costs $1.99 and your gluten free flour costs $3.99, then you can only claim the difference between the two prices: $2.00.
  3. Note that in order to claim a tax deduction for medical expenses (including any gluten-free food purchases), your expenditures must exceed 7.5 percent of your adjusted gross income minus any insurance reimbursements. For example, if you have an adjusted gross income of $50,000 a year, then your total medical expenditures must exceed $3,750 in order to claim a tax deduction and use the gluten-free food expenses.
  4. Try using your insurance's flexible spending account. If you have medical coverage and likely cannot claim a tax deduction for the cost of your gluten free food, your employer's Flexible Spending Plan may allow reimbursement for the cost of gluten free food.
  5. Be persistent if you're researching whether your Flexible Spending Plan will cover the cost of gluten free foods. Your human resources department may not know if the expenses are covered. Contact the provider if necessary until you get a definite answer from someone whether you can get reimbursed for your gluten-free food.

Tips & Warnings

  • As a result of the 7.5 percent requirement, it's likely that many people with celiac disease won't be able to claim the cost of gluten-free food through their tax return unless they have no medical insurance or have no coverage for a particular condition and must spend their own money for medical care.

Read more: How to Get Tax Deductions for Food | eHow.com http://www.ehow.com/how_2089426_get-tax-deductions-food.html#ixzz19MFEjEby

5 comments:

  1. Does this work only with a celiac diagnosis or an EE diagnosis works as well for the tax deduction?

    ReplyDelete
  2. This would apply to Eosinophilic Esophagitis & EGID as well. I know other Eos parents who have been taking the deductions for years.

    I have to look into what limitations there may be on the particular food items that you can claim, but the basics (alt milks vs cow's milk, alt. breads vs regular wheat bread, etc) are applicable.

    I am about to go through all of my grocery receipts for the year and itemize everything, which prompted me to post this article I had found. I haven't done this in past years, although I should have. We have definitely surpassed the 7.5%.

    I hope the article is helpful to you.

    ReplyDelete
  3. Per the IRS website,
    " You can include the cost of special food in medical expenses only if:

    1. The food does not satisfy normal nutritional needs,
    2. The food alleviates or treats an illness, and
    3. The need for the food is substantiated by a physician.

    The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet.

    ReplyDelete
  4. For anyone who is also a member of Kids With Food Allergies, they have multiple threads on the subject in their Support Forums. Some can be found by searching "tax" and others "FSA" (Flex Spending Account).

    ReplyDelete
  5. Do you have any idea how/if this works with NJ state income taxes? I know the threshhold there is only 2% but can't find anything online about taking the same deduction on state income taxes.

    (The NJ division of taxations website says that: "In general, medical expenses allowed for Federal income tax purposes are also allowed for New Jersey purposes." But it is that "In general" that concerns me!)

    ReplyDelete