According to the United States IRS (Canadians, please see link below), individuals with a confirmed diagnosis of Celiac (ie you need a doctor’s note), can deduct their expenses related to a gluten-free diet. Expenses can include food items and shipping costs. Guidelines must be followed and though it does require some extra work keeping a record, receipts, calculating, etc., you may find it well worth the effort. Basically, you can deduct the “difference” between a regularly priced item and a gluten-free item. For example, if a loaf of wheat bread cost $3.00 and you paid $4.00 for your GF bread, you would be able to deduct $1.00 on that particular purchase. You can deduct the total cost of Xanthan gum and Sorghum flour, products frequently used in gluten-free baking. So, make yourself a log listing: Date, Item, Price Paid, Comparable Price, Amount of Difference and you will be ready at the end of the year to submit this along with your receipts and a doctor’s note, to your tax accountant.
Important to note regarding Medical Expense Deduction: according to IRS “taxpayers can deduct expenses for medical care of the taxpayer, spouse, or dependent, to the extent the expenses EXCEED 7.5 percent of adjusted gross income (AGI) ….” taxpayers cannot deduct personal, family or living expenses as medical care if the expenses DO NOT fall within the section 213 definition”.* (Example: if a person’s AGI is $100,000, their expenses would have to exceed $7,500 before any medical expenses could be deducted)
If you participate in a Section 125 (Flexible) plan, discuss with both your employer and your accountant how this may benefit you.
Recommended Viewing:
– IRS 1040, Schedule A (this is the IRS form to fill out & file) – IRS Form 502 – More Info on Form 502
Note: There may be changes to come in the future regarding tax deductions of medical expenses. We will modify our instructions once changes have been finalized.
Canadians: Please view HERE for information on gluten-free deductions from the Canada Revenue Agency.
