Diets may indeed be deductible, IRS says

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The IRS says obesity is a disease, which makes some weight loss treatments eligible for a tax deduction.

The Internal Revenue Service issued guidance to taxpayers saying people diagnosed by their physicians as obese can deduct the cost of weight-loss programs as a medical expense if they aren't reimbursed by insurance. The cost of special low-calorie foods, however, isn't deductible.

It is "not specified" whether it would also cover the cost of gym memberships and exercise equipment, IRS officials said.

"This is fantastic, important and significant," said Barbara Corkey, director of obesity research at Boston University. "It's time we stopped treating people with this problem like they've been bad, and start treating obesity for the medical condition that it is."

Taxpayers will not need to provide any proof of diagnosis nor details about the specific weight loss program that they used when filing returns. But they should keep these documents in case they're audited, IRS officials said.

While welcome, the ruling is not likely to result in huge tax savings, accountants note. That's mainly because medical expenses are only deductible once they exceed 7.5 percent of a taxpayer's adjusted gross income — which is income after such deductions as 401(k) and individual retirement account contributions. For example, a taxpayer earning $30,000 can only deduct medical expenses that exceed $2,250, or 7.5 percent of income.

The ruling comes only four months after the U.S. Surgeon General called obesity a national epidemic, affecting roughly 35 percent of the adult population and roughly 14 percent of the nation's children.