Unusual Medical Expense Deductions

A friend recently asked if her pet’s surgery qualified as a legitimate tax deduction and while the answer is typically no there are a lot of unusual medical expense deductions available if you just take time to look into them a bit more.

In addition to medical expenses, there are business expenses that are legitimately tax deductible. The IRS allows what is deemed reasonable, but sometimes that lands us in a gray area.

On occasion, we have certain medical expenses that seem obscure on the surface but are, in fact, tax deductible. Some of these deductions might surprise you, but they may also apply to you and your unique circumstances.

They include:
•     Lasik eye surgery.
•     Prescribed herbal supplements for migraine headaches.
•     Hearing-aid batteries.
•     Wigs for those dealing with hair loss.
•     Costs associated with buying, training and maintaining a guide dog.
•     Breast pumps.
•     Remedial reading for dyslexic children.
•     In-vitro fertilization treatments.
•     New home siding if previous siding had mold that impacted the health of the homeowner.
•     The cost difference between a gluten-free diet and a non-gluten-free diet.
•     A swimming pool for treating an injury/illness.
•     Home improvements benefiting someone with a disability.
•     Pregnancy tests.
•     Hormone therapy medications.
•     Body scans.
•     Prescribed mattress for those with back troubles or a sleeping disorder.
•     Smoking cessation medication/programs.

Keep in mind that this is not an exhaustive list and all of these deductions are restrictive to certain circumstances. You may be entertained by some of the more obscure and odd medical expense deductions that have been allowed although I am not recommending you add these to your tax return any time soon. Even if you believe you are eligible for one or more of these deductions, it’s important to consult with me so we can determine whether they apply to you and your particular situation.

Here’s the best way to figure out what’s considered reasonable in business expenses and deductions:

Your job: Since you’re going to be keeping good records, go ahead and push the limits: ask me about anything. Don’t automatically assume something is not deductible. Business expenses are handled very differently from employee expenses. I’ve helped many business owners discover deductions that never would have occurred to them.

A few details about deductions: What can you write off in terms of expenses? Examples include:

• Advertising    
• Bank service charges
• Depreciation
• Education
• Insurance
• Interest expense
• Legal and accounting
• Meals and entertainment (at 50%)
• Mileage (44.5 cents for 2006, 48.5 cents for 2007)
• Networking
• Outside services
• Postage
• Printing
• Professional fees
• Rent
• Supplies
• Taxes
• Potential to write off expenses not necessarily deductible by calculating the Business Use of the Home

Remember, it’s my job to keep you on the low side of a tax bill and the high side of the law. And if that’s not reasonable, I don’t know what is. So give us a call and lets talk through your legal deductions and expenses.