Tax Deductions for Those with Celiac Disease
If you or one of your dependents has celiac disease and you itemize your deductions, the extra costs due to gluten-free dietary restrictions may be taken as a medical expense. There is an important caveat that may exclude many people including myself; the amount of allowable medical expenses must exceed 7.5% of your adjusted gross income in order to qualify for this deduction. For the record, I do not do this as it’s a lot of work and I would more than likely not qualify.
1) Deduct the Difference: You may deduct the cost of Gluten-Free (GF) food that is in EXCESS of the cost of the gluten containing food that you are replacing. For example: If a loaf of gluten-free bread costs $5.00 and a comparable loaf of gluten containing bread costs $2.50, you may include in your medical expenses the excess cost of $2.50.
2) Specialty Item Deductions: The full cost of special items needed for a GF diet may be deducted. Example: The cost of XANTHAN GUM used in GF home baked items, which is completely different than anything used in a standard recipe.
3) Special Trip & Travel: If you make a special trip to a specialty store to purchase GF foods, the actual cost of your transportation to and from the store is deductible. If you use your vehicle for this purpose during 2011+, you may deduct 19 cents per mile. You may include tolls and parking fees.
4) Mail and Delivery Deductions: The full cost of postage or other delivery expenses for gluten-free foods made by mail order are deductible.
5) Medical Education Expenses: You may include expenses for admission and transportation to a medical conference relating the chronic disease of yourself, your spouse, or your dependent (if the costs are primarily for and essential to the medical care). This has been ruled to include the registration of yourself, your spouse and your celiac dependent. However, you may not deduct the costs for meals and lodging while attending the medical conference.
What to do:
1) Get a letter from your doctor indicating that you have Celiac Disease and must adhere to a Gluten-free diet.
2) Track expenses in the form of receipts for your GF purchases and a schedule showing how you computed your deductions for the GF foods.
3) The total amount of your deduction for GF foods should be added to your other medical expenses that are reported on Schedule A of your form 1040.
4) The tax code is constantly changing so always consult your tax preparer when calculating your deductions, and refer them to:
IRS Publication 502 | Revenue Ruling 55-261, Cohen 38 TC 387 | Revenue Ruling 76-80, 67 TC 481, Fleming TC MEMO 1980 583, Van Kalb TC MEMO 1978 366
Is it worth it?
This is a lot of work and as previously mentioned, I do not personally do this nor have I been encouraged to by my CPA husband. In fact, most CPA’s I’ve spoken to have said it’s either not worth it or you won’t exceed 7.5% of your adjusted gross income in order to qualify for this deduction. Every family is different. Speak with your own tax professional to decide if it’s worth it for you and your family.
Resources
Publication 502: Medical & Dental Expenses: https://www.irs.gov/pub/irs-pdf/p502.pdf
Tax Deduction Guide from the Celiac Disease Foundation: https://celiac.org/wp-content/uploads/2010/02/tax-deductions-2011.pdf
National Celiac: https://nationalceliac.org/tax-deductions-for-gluten-free-food/
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