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» LymeNet Flash » Questions and Discussion » General Support » What are the rules for medical deductions on federal income tax?

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Author Topic: What are the rules for medical deductions on federal income tax?
Somalimom
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Hi all,

Over the past year I've been seeing a doctor who is treating my Lyme with alternative medicine. Of course, the health insurance my husband has through his employer doesn't cover supplements, so we've had to spend thousands of our own dollars on my treatments. I've heard that it's possible to take medical deductions on federal income tax as long as you've spent a certain percentage of your income on medical expenses. I think we'd qualify percentage-wise, but I'm wondering ... do supplements, detox treatments, etc. count toward this? Since I've been seeing a doctor and he's "prescribed" these things for my treatment (his recommendations are all on paper, and I have receipts for everything), it would seem that they *should* count, but I know things are rarely as they should be when it comes to the establishment and its views on alternative medicine.

Anyway ... if any of you know about this or could refer me to useful books, articles, or websites that might help, I'd appreciate your input.

Thanks!
Jennifer


Posts: 28 | From Texas, USA | Registered: Aug 2003  |  IP: Logged | Report this post to a Moderator
ConnieMc
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Go to IRS.gov to read the entire section on medical deductions. I do emphasize the ENTIRE section. Here's why - last year, I looked at the section entitled something like "medical expenses which are not deductable"; in the fine print of this, it said something like supplements/vitamins cannot be deducted UNLESS prescribed by a doctor for a SPECIFIC medical condition. OK, if you just skimmed that particular section, you might not realize that there is an "unless" in there. And might think these are not deductable.

So what you need to do is write up a statement for your doctor to sign which says something like this:

In 2004, I recommended the following supplements and alternative medicine treatments for this patients for treatment of Lyme Disease (and whatever else applies). Then make a detailed list of all these, then put a line at the end for your doc to sign and date it. Add up your receipts and have these available for the IRS should you have an audit. Otherwise, all this is for your records, and is not attached to the 1040.

We have a CPA to do our taxes and he didn't blink an eye, and said everything was fine.

Hope this helps!


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Somalimom
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WOW! Thanks so much for this! My husband thought this stuff wasn't deductible and wasn't even going to try. I'm so glad I decided to ask!

We'll definitely pursue this with my doctor. Thanks again for your help!

Smiles,
Jennifer


Posts: 28 | From Texas, USA | Registered: Aug 2003  |  IP: Logged | Report this post to a Moderator
KBear
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The irs.gov site is a great place to go.

One thing I know you can do, and this is especially good if your doctor is far away, is add up the mileage you travel there and back and you get a certain amount for each mile. I'm not sure what the amount is this year. Also if you have to stay overnight you can deduct meals and lodging expenses. Don't know if it's a percentage or the whole amount, but that info would be on the web site. Good luck!


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can not remeber
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you are allowed 3500 dollars. If you itemize and go over the 3500 dollar limit you must document and can write the overage off. If you are an out patient, travel etc ask your CPA. I assume you itemize if you hire a CPA. Personally, this year after my deductable I will definitly be over my 3500 limit, I am going to ask about hotel, airfare, copies of medical records, phone calls to medical professionals, billing, insurance companys etc. Paying someone knowledgable is not only a tax write off, but you could be leaving money on the table. Tax laws are constantly changing, it may be worth the money to hire an expert to do your taxes.
Be well,
T.

Posts: 61 | From cosmo | Registered: Nov 2004  |  IP: Logged | Report this post to a Moderator
slcd
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FYI - I work for a CPA firm, so one of the partners here has explained a portion of all of this to me since he is going to do my taxes for me this year and wants me to deduct my medical expenses:

Mileage is $0.14 per mile this year
Lodging is up to $50 per night.


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JavaBeing
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Somalimom--great question!
I'm relatively new here, and probably like many "newbies", have many things we didn't even consider for taxes.

Regarding doctors however, my question is this: I'm using both medical and alternative docs. Though most of my expenses and treatments have been through my alternative program. Does it matter 'which' doctor gave the referral or recommendation for treatment services? In other words, does the IRS take the referrals, treatments and supplements from an alternative doc as they will a western medical doc?

Thanks again EVERYONE for the answers and the info you've all provided. It will offer invaluable assistance to those of us who didn't know we had such options.

Health and healing,
JavaBaing


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mulelover31
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Hey you all! Thanks so much for this info!!!!!!!! I am soooooo glad to get this! We need to make sure this stays at the top as alot of people will be helped with this. Thanks again!
Mule

Posts: 124 | From Mound City MO USA | Registered: Sep 2004  |  IP: Logged | Report this post to a Moderator
Somalimom
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JavaBeing has a good question regarding docs ... hope an answer will be posted here.

In my case, the doctor who is treating me is actually an MD, but he uses alternative methods most of the time. Knowing the mainstream medical/insurance establishment's bias against such treatments, I feared that the only allowable deductions would be for prescriptions and doctors' visits. But according to the posts here (and my own understanding of the IRS info), all the herbs, supplements, detox treatments, etc. count because my doctor recommended them for the treatment of a specific medical condition (Lyme and complications).

It's easy for me to prove that my doctor recommended all this stuff because, each time I see him, I'm given a set of papers that includes his evaluation of my condition, plus a detailed list of instructions to follow until my next visit. Ever since I started with this doc, I've been keeping all my receipts for doctor visits, treatments, supplements, prescriptions, etc. in a designated folder, so I can easily add up how much everything cost in 2004 (though I'm sure I don't want to know!). I'm already starting a new folder for 2005.

One thing I wish I'd known about is the mileage deduction. Hubby and I have put in quite a few miles (and hours) this past year going to treatment sessions. Guess a log book for our car will be a new project for 2005.

Thanks again to everyone who has contributed advice here. I have a feeling there are lots of folks out there who don't know about these deductios...especially those who do alternative treatments. This is not a cheap disease, so we need all the help we can get!

Smiles and best wishes. :-)


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Kara Tyson
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I cant stand the way taxes are done.

I spent $1000 on gas just for school and it looks like I cant deduct any of it.


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ConnieMc
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quote:
Originally posted by Somalimom:
One thing I wish I'd known about is the mileage deduction. Hubby and I have put in quite a few miles (and hours) this past year going to treatment sessions. Guess a log book for our car will be a new project for 2005.


Why can't you just get a list of the visits to the doc etc. and use that for taxes? All you really need to know is the date of the trip. You can use one of those on-line direction sites to get the exact number of miles one way and go from there. Most doc's offices can print you out a list of the trips you have made for the entire year. If you have dates of other visits, like x-rays, tests, etc, why not just figure it all out? It should not take long to do something like this. I backtracked last year and it was no problem at all. Include even trips to the pharmacy if you want. It adds up, no kidding.

Also, anyone who has any sort of health club membership ... If a doc will sign a statement saying that you go there as part of treatment for a specific disease or condition, this is also deductable.


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riversinger
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quote:
Originally posted by JavaBeing:
Regarding doctors however, my question is this: I'm using both medical and alternative docs..... Does it matter 'which' doctor gave the referral or recommendation for treatment services?


I'm guessing it would have to be a doctor that is recognized by your state as being legal to prescribe and treat disease. So, a chiropractor, or a licensed acupuncturist, or in some states, a naturopath would qualify.

I'm lucky, because my naturopath is also a PA, so the doctor's office signs off on everything. If your practitioner isn't able to legally claim that they diagnose and treat, for example an herbalist or a lay homeopath, than it would be more questionable.

If your insurance company would pay for the practitioner, then they probably would qualify. But you would have to ask your tax advisor to be sure.

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Sonoma County Lyme Support
[email protected]


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Lymetoo
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quote:
Originally posted by ConnieMc:
Why can't you just get a list of the visits to the doc etc. and use that for taxes? All you really need to know is the date of the trip.

I'm pretty sure that is acceptable. Check into it. I know I've done it before. One thing I do is keep my calendars. That helps document dr's appointments, etc.

Two Questions:
$3500 limit????
and $.14 a mile????
Are you sure?

Is the mileage deduction different for business expenses? I thought it was around $.37 a mile for business....but why would it be different for medical deductions??

------------------
oops!
Lymetutu


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Somalimom
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quote:
Originally posted by ConnieMc:
Why can't you just get a list of the visits to the doc etc. and use that for taxes? All you really need to know is the date of the trip. You can use one of those on-line direction sites to get the exact number of miles one way and go from there.

*slapping forehead* Well, duh! I hadn't thought of that! Sounds easy enough. Will have to go through my records, but it shouldn't be a big deal.

Thanks for this very helpful suggestion.

Somalimom


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slcd
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Positive on the $.14 per mile.

The partner at my firm looked it up in this years "Package X" under medical deductions just to make sure what I could deduct on that since he knows I drive about 600 miles every 3 weeks.

He wanted to make sure I got as much back as possible.

I guess it's probably different from business deductions because they ASSUME you have the option of going to close doctors whereas you don't always have options of where you drive for business?

Just a guess . . .


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KBear
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The mileage allowance must have actually gone up. Last year it was 12 cents per mile!

Last year the business allowance was 36 cents, don't know if that's gone up for this year too.

I keep one of those mileage log books in the car, but I also write all dr appointments, etc, on a calendar and then double check it all at the end of the year. A lot of times I forget to log things in the book, or I forget to write the mileage in when I get back home.


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ConnieMc
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Bringing this up for others since we are now in the middle of tax season.
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pab
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quote:
Originally posted by can not remeber:
you are allowed 3500 dollars. If you itemize and go over the 3500 dollar limit you must document and can write the overage off.


To deduct medical expenses, you have to itemize deductions.

Medical expenses are only deductible to the extent they exceed 7.5% of your Adjusted Gross Income.

The first 7.5% of medical expenses are not deductible.


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