A Few Health Related or Medical Expenses You May Be able to Deduct this Tax Season

When gathering your deductions this tax season, don't forget to investigate some of the health related expenses or medical expenses you may be able to deduct. Weight loss programs or exercise related activities or quite possibly full dollar tax credits for your car. The main thing is that your doctor needs to declare the deduction a “medically necessary” or as a “medical care expense”, lets explain.

According to Irs pub 502, medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation.

*Weight-Loss Program

You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). This includes fees you pay for membership in a weight reduction group and attendance at periodic meetings. You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities.

You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. You can include the cost of special food in medical expenses only if:

•  The food does not satisfy normal nutritional needs,

•  The food alleviates or treats an illness, and

•  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.

*What Expenses Are Not Includible ?

Following is a list of some items that you cannot include in figuring your medical expense deduction.

Health Club Dues

You cannot include in medical expenses health club dues, or amounts paid to improve one's general health or to relieve physical or mental discomfort not related to a particular medical condition.

You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose.

*Weight-Loss Program

You cannot include in medical expenses the cost of a weight-loss program if the purpose of the weight loss is the improvement of appearance, general health, or sense of well-being. You cannot include amounts you pay to lose weight unless the weight loss is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). This includes fees you pay for membership in a weight reduction group and attendance at periodic meetings. Also, you cannot include membership dues in a gym, health club, or spa.

You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. You cannot include the cost of special food in medical expenses unless all three of the following requirements are met.

•  The food does not satisfy normal nutritional needs.

•  The food alleviates or treats an illness.

•  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.

To figure out which of your weight-loss and fitness efforts can reduce your taxes, consult the chart below. For more information, see IRS Publication 502, available online at irs.gov.

*Information above comes directly from IRS Publication 502

Car Deductions for “Medical Expeses”?

You can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. Not driving to or from any weight loss programs or health clubs.

New Hybrid Car incentives

The new credits are more valuable than the prior fed tax incentives for hybrid cars which were only offered as a reduction of your taxable income. The new hybrid car incentives, offer- full dollar tax credits- this credit took effect Jan1, 2006. Please consult a tax professional. Furthermore, the I.R.S. has posted a summary of the hybrid tax credits, and the appropriate forms. The exact amount of your credit may vary. Please consult a tax professional. Buyer beware: Before getting too excited about these tax credits, determine if your are subject to the Alternative Minimum Tax (AMT). These credits will not reduce your AMT. Please consult a tax professional.

Resouces:

http://www.hybridcars.com/federal-incentives.html

http://www.irs.gov/newsroom/article/0,,id=157557,00.html