IRS Tax Deduction for Weight loss surgery

March 29, 200719 yr

Yes! It can also be paid with a Flex Spending Account, which basically saves you the taxes.

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March 29, 200719 yr

A friend told me that we can claim the $$ we paid for the band on our tax return (cash paying patients). She said that any amount over 7.5% of our income for year was tax deductable, so we could claim it and get it back. Does anyone else know if that's true?

Yes, it is tax deductable. I'm not sure of the percentages and what you get back, I use TurboTax. But we were able to deduct all of our medical costs for the year, since the surgery put us over the amount you must have before you can indeed deduct medical costs. So remember things like co-pay on office visits and prescriptions, medical insurance premiums, equipment(like a C-PAP).

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March 29, 200719 yr

Author

So, to make sure I am clear, let's say 7.5% of my income is $2000.00. So, if the band surgery cost me $4000.00, I'd be able to claim $2000.00 of it on my tax return? Also, does that mean I take $2000.00 off my taxable income, or I actually get $2000.00 paid back to me by the IRS?

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March 29, 200719 yr

Medical expenses must be at least 7.5% of your AGI, not just your income. And you can only deduct the part of the expenses that are above the 7.5%. In other words, subtract 7.5% of your AGI from your medical expenses to figure your medical expense deduction.

Deductions are not amounts that you get back from the IRS, they are amounts that are not liable for taxation. And it's only on out-of-pocket expenses - nothing eligible for reimbursement (meaning if something is reimburseable, and you just don't submit for it, too bad - you can't clain it) from your insurer or from your flex spending.

Say your AGI is $80,000. To qualify for a medical expense deduction, you'd need to spend more than $6,000 out of pocket. So if you spent $6,010 you'd only get to deduct $10. And that $10 deduction would only reduce your tax liability by $2.50 if you're in the 25 percent tax bracket.

So, to make sure I am clear, let's say 7.5% of my income is $2000.00. So, if the band surgery cost me $4000.00, I'd be able to claim $2000.00 of it on my tax return? Also, does that mean I take $2000.00 off my taxable income, or I actually get $2000.00 paid back to me by the IRS?

If 7.5% of your AGI is $2000, and your suergy costs $4000, you could claim $2000, subjected to your tax bracke. You would not get $2000 back from the IRS.

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March 29, 200719 yr

Recordkeeping. For each medical expense, you should keep a record of: <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>

· The name and address of each person you paid, and<o:p></o:p>

· The amount and date of each payment.<o:p></o:p>

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Record of medical expenses<o:p></o:p>

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</TD><TD style="BORDER-RIGHT: windowtext 1pt solid; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt">Address of each person you paid <o:p></o:p>

</TD><TD style="BORDER-RIGHT: windowtext 1pt solid; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt">Amount paid <o:p></o:p>

</TD><TD style="BORDER-RIGHT: windowtext 1pt solid; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt">Date paid <o:p></o:p>

</TD><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt">Transportation (mileage, taxi, etc.) <o:p></o:p>

</TD></TR><TR style="mso-yfti-irow: 1"><TD style="BORDER-RIGHT: windowtext 1pt solid; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt">1. <o:p></o:p>

</TD><TD style="BORDER-RIGHT: windowtext 1pt solid; PADDING-RIGHT: 0.75pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; BORDER-LEFT: #ece9d8; PADDING-TOP: 0.75pt; BORDER-BOTTOM: windowtext 1pt solid; BACKGROUND-COLOR: transparent; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt"> <o:p></o:p>