Of interest to all of us!
Fighting Obesity Is Tax-Deductible
IRS Says You Can Deduct Prescribed Weight-Loss Plans
By Jennifer Warner
April 3, 2002 — The battle of the bulge is about to get a little easier on
your pocketbook. The Internal Revenue Service issued a ruling Tuesday that
officially recognizes obesity as a disease — making physician-prescribed
plans to treat it tax-deductible.
Experts say the ruling may set a precedent for insurance companies and other
government-sponsored programs like Medicare to offer coverage for obesity
programs.
But the new deduction will likely only apply to a small percentage of people
who are trying to lose weight. The ruling does not apply to people who want
to shed pounds in order to improve their general health and appearance.
Fees associated with joining weight-loss programs, such as Weight Watchers,
Jenny Craig, and others, and attending meetings are now deductible expenses
for those who have been referred to the programs by a doctor to treat
obesity. But the cost of diet foods is not deductible.
According to the IRS, “Although diet foods may also be part of a weight-loss
program, these are substitutes for the food the taxpayers normally consume
and satisfy their nutritional requirements. As such, they are not deductible
medical expenses, even for taxpayers whose disease qualifies them to deduct
weight-loss program costs.”
In addition, taxpayers may deduct qualifying medical expenses, including
weight-loss plans, only to the extent the total of such expenses exceeds
7.5% of their adjusted gross income.
The IRS says this ruling not only applies to the 2001 tax returns being
filed this year and future returns, but also to any previous years for which
the taxpayer can file an amended return (generally three years after the due
date).
The judgment updates a previous IRS policy that allowed deductions for
physician-ordered weight loss plans prescribed to combat diseases such as
heart disease and high blood pressure.
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