Allergy food tax break

[shelby101301]

I just was sent this info by a friend. Man, I wish I had receipts for the last year. At least now I can save for the coming year. HTH!


Do you have Celiac disease? Then you know that Gluten Free products are a “budget buster”! What you might not know is that they are also tax deductible! Actually any allergen free food can be deducted if you have a proper diagnosis from a doctor!

Here’s what you need to know:

Visit your doctor:You’ll need a note from your doctor specifying you are diagnosed with celiac disease and must consume a gluten free diet for life. If you are claiming food for a different type of allergy just make sure your doctor specifies what you are allergic to and that you MUST consume a diet that is free of this allergen for life.

Break out the calculator: You can claim only the EXTRA COST of the gluten-free or allergen free product over what you would pay for a similar item at a grocery store. For example, if wheat flour costs $.89 per 5 lbs. and Gluten-Free rice flour is $3.25 per 5 lbs., the DIFFERENCE of $2.36 is tax deductible.

Additional Deductions: You may also claim mileage expense for the extra trip to the health or specialty store and postage/shipping if you’re ordering products online.

Xantham Gum- The cost of Xantham Gum used in gluten-free home baked goods is completely different than anything used in an ordinary recipe, so in the opinion of the IRS, the total cost of this item can be claimed. (this was true as of 1993 this may have changed since then?)
Here’s what you need to do:

Proof of Purchase – Save all receipts and cancelled checks and ALWAYS highlight or circle Gluten Free products so you can easily tell at the end of the year which items will be calculated. This is important as items are often abbreviated on your receipt and it can be confusing…so do it right away!

Keeping Track – Keep track of mileage and shipping charges and postage as these are also deductible. Keep this with your receipts!

Spread Sheet- Start a spread sheet with a column for regular food and a column for it’s equivalent gluten-free product. Refer to this at tax time to figure your deductions and add to it through out the year if and when you buy new products.

Organization - Keep all receipts in one place so that you are ready to go come tax time!

Filing your claim: When it comes time to file your claim fill out form 1040 schedule A for medical deductions. Attach a letter from your doctor to your tax return. This letter should state that you have Celiac Sprue disease and must adhere to a total gluten-free diet for life.

Your Accountant – Let your accountant know ahead of time you’ll be claiming these expenses so he may education himself if he chooses before hand!

Your records - File your receipts away with your tax return so you have them if they ever get called into question.
Your IRS office may refer you to Publication 17 and tell you these deductions are not permissible. IRS representatives have ruled otherwise and this is applicable throughout the US. Refer them to the following Citations:

IRS Publication 502
Revenue Rulings: 55-261, 76-80, 2002-19 and 67 TC 481
Cohen 38 TC 387
Flemming TC MEMO 1980 583
Van Kalb TC MEMO 1978 366
Feel free to cite these references in your tax paperwork. For specific circumstances, contact an accountant.

 

[snorris49]

Wow, that is great news for those who are celiac! I only wish those of us who were gluten intolerant could claim them too! It can be expensive, but it's worth the price of not getting sick.

Thanks for sharing, and I hope some Celiacs out there will be able to take advantage of this in the New Year.

 

[FreeTime]

I was told this 5 years ago when my daughter was diagnosed but was told that we also had to have proof via receipt of the price of the non gluten free item. Which didn't make sense to me because why would I buy regular mac & cheese and thne gluten free. I attempted to collect receipts from friends that would buy the regular products but it was such a hassle. I will have to look into this again. Thanks!

 

[Cheshire Figment]

One related item is that the price differential would just be added to all other medical expenses; it is still limited to the amount that total medical expenses exceeds 7.5% of Adjusted Gross Income. So it will only work if (a) you itemize, and (b) your total medical expenses are high.

 

[Rayvn]

Great news! Too bad the lady who has been at my local H&R Block didn't know any of this and told me I was wrong.

Leslie

 

[A Mickeyfan]

wow... didn't know this!! My oldest DD has Celiac's ... and she will be very happy to hear this.. I need to pass this info on to her...

 

[kkandaj]

You can also be reimbursed the price difference of specialty gluten-free foods through flexible spending plans. What irks me is that even though I spend TONS of money on specialty items for my DS with multiple food allergies (soy, dairy, egg, nuts), I cannot be reimbursed for any of the those foods. Believe me--I tried--twice. The governement clearly states it can only be gluten-free foods for people that have gluten issues. Even though he clearly has a diagnosis and has to be challenged on foods in the hospital because his reactions are so severe, because his issues aren't gluten related, it cannot benefit us.

This is the issue I have with gluten-free. I just don't know why other food allergies have fallen to the wayside, not only at WDW, but with our government.

Please don't take this wrong. I am not upset with anyone with gluten issues, at all! I would not want to walk in your shoes--just as you probably don't want to walk in mine. I just don't understand why other food allergies are overlooked.

And if I'm wrong about the tax break, etc...PLEASE let me know!!!! We could use it!