PRESCRIPTIONS
Weight-loss expenses get some tax breaks
By Amy Tousman
Q. Can I deduct the cost of a weight-reduction program from my taxes?
A. It depends.
The Internal Revenue Service allows some taxpayers to deduct expenses for weight management. Deductible expenses include gastric-bypass surgery, nutrition counseling, physician and hospital-based programs, some commercial weight loss programs, and FDA-approved weight-loss drugs.
To qualify, you must have a physician document that you are either obese or have a medical condition that would benefit from weight loss. Examples of such conditions are heart disease, high blood pressure, type 2 diabetes and high cholesterol.
You can't deduct health-club dues, nutritional supplements, over-the counter products, diet foods, or exercise equipment. Joining a weight-control program to improve your appearance, for general health or to lose a few pounds does not qualify.
There are two categories of taxpayers eligible:
1) Taxpayers who itemize deductions can add weight-management costs to their medical and dental expenses. The catch is: You can only deduct for expenses that exceed 7.5 percent of your adjusted gross income. This means that if your adjusted gross income is $50,000, you could only deduct medical expenses exceeding $3,750.
2) Employees who set aside pre-tax dollars in Medical Savings Accounts or Flexible Spending Accounts can include weight-management costs.
With these accounts, your employer deducts money from your paycheck before taxes. This money can be used for weight-management, medical, and dental expenses during the year. Your employer reimburses you for these expenses as they occur. You are not taxed on the money deducted.
The advantage of Medical Savings or Flexible Spending accounts is that any amount can be deducted. Expenses do not need to exceed 7.5 percent of your income.
You still need a written doctor's order for weight-loss treatment. The types of deductible expenses are the same as for those who itemize.
Anyone who has a medical need for weight loss should have access to the appropriate programs. Unfortunately, many insurers do not cover nutritional counseling or weight-management programs.
Ask your employer to request these programs be included in insurance packages for employees.
If your doctor refers you to a dietitian or a weight management program, demand reimbursement from insurers.
Amy Tousman is a registered dietitian with the Health Education Center of Straub Clinic and Hospital. Hawai'i experts in traditional medicine, naturopathic medicine and diet take turns writing the Prescriptions column.
Send your questions to: Prescriptions, Island Life, The Advertiser, P.O. Box 3110, Honolulu, HI 96802; fax 535-8170; or e-mail islandlife@honoluluadvertiser.com.
This column is not intended to provide medical advice.
