Tax Deduction Guide for Gluten-Free Products
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Jan
03
Tax Deduction Guide for Gluten-Free Products
by K.C. Pomering, Posted January 3rd, 2011 at 10:52 pm
If you or your child has celiac disease, don’t forget to talk to your accountant about deducting the extra expenses related to the gluten-free diet. If your total medical expenses for the year exceed 7.5% of your adjusted gross income, you may be able to deduct the difference in cost between “regular” food products and gluten-free alternatives, as well as the total cost of items that would not be purchased at all if not for the gluten-free diet (such as xantham gum or sorghum flour, for example), and shipping costs. When looking at total medical expenses, be sure to include doctor and Rx co-pays, insurance, dental, and other expenses that could be used. Be sure to consult a tax professional about your tax deductions for Celiac Disease costs and tax write-offs for a gluten free diet. Read more:
From the National Foundation for Celiac Awareness:
Individuals diagnosed with celiac disease may be able to receive tax deductions for expenses associated with gluten-free foods and products. However, there are a few catches to obtaining them.
Here are a few tips to help you through all the procedures and paperwork:
Step 1: Get A Doctor’s Note
Request an official, written celiac diagnosis from your doctor.
Submit this documentation with your other completed forms (see Step 4). Make sure to keep a copy for your records!
Step 2: Save Your Receipts
Keep receipts of all gluten-free purchases from grocery stores, bakeries and anywhere else you buy gluten-free items.
Step 3: Break Out the Calculator
List the prices of gluten-free foods compared to those of regular foods. The difference between those prices is tax-deductible. For example, if a pound of wheat flour costs $0.89 and a pound of rice flour costs $3.25, then you may deduct $2.36 for each pound of rice flour purchased.
Products like xanthan gum and sorghum flour are completely tax-deductible as they have no “regular” counterpart but are purchased to meet your dietary needs. Shipping costs for online purchases are also permissible deductions.
Step 4: File Your Claim
Fill out form 1040 schedule A for medical deductions.
Refer to:
- IRS Publication 502
- Revenue Rulings: 55-261, 76-80, 2002-19 and 67 TC 481
- Cohen 38 TC 387
- Flemming TC MEMO 1980 583
- Van Kalb TC MEMO 1978 366
Feel free to cite these references in your tax paperwork. For specific circumstances, contact an accountant or tax professional.
Filed under:
G-Free Foodie Guides, KC's Blog
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