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    Howard J. Kass, CPA
    Howard J. Kass, CPA

    Howard J. Kass, CPA - February 16, 1999 on Tax Deductions for Celiacs

    Reviewed and edited by a celiac disease expert.

    The information posted by Sandra Leonard that she received from the American Celiac Society was factually correct, and is essentially the same information that can be found in my article on Scott Adams Web site (www.celiac.com). I think it is important, though, to say that only a limited number of people are going to actually benefit from compiling all the information required to take the deduction because of the limitations in the Internal Revenue Code for deducting medical expenses.

    In order to take a deduction for medical expenses, the total amount incurred, NET OF INSURANCE REIMBURSEMENTS, must exceed 7.5% of Adjusted Gross Income (AGI). In other words, if a taxpayer (and spouse, if applicable) had AGI of $80,000, they would have to accumulate over $6,000 of out-of-pocket medical expenses before they would realize any benefit at all.

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    In my practice, the only taxpayers who actually deduct medical expenses, because of the above limitations, are those who pay for their own health insurance, and those who had an extraordinary amount of medical expense that their insurance didnt cover. To summarize, the following individuals should consider compiling and deducting the cost of the gluten-free diet: Those who pay for their own health insurance, and those who had large, uninsured medical bills.

    For most everyone else, such an exercise would, most likely, be an exercise in futility.

    I hope this is helpful. If you have any questions, e-mail me at: Open Original Shared Link

    Howard J. Kass, CPA
    Partner, Zinner & Co. LLP
    29125 Chagrin Blvd.
    Cleveland, OH 44122
    Tel: (216) 831-0733
    Fax: (216) 765-7118



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    Guest Marsha Crooks

    Posted

    I appreciate your web site. My grandson just got diagnosed and it is not an easy adjustment. I have colitis and Crohn's so I can understand his frustration with not being able to eat certain foods, but we want to make sure we are doing the right thing for him.

    Thank you for your wonderful web site!!!!!!

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    Guest Denice J

    Posted

    My family has an income of $40,000/yr after retirement and our medical insurance are pre-deducted and when we have kids in braces our medical expenses are easily over 7.5% of our adjusted gross income. I understand, however, that it is only the additional cost of gluten-free foods that is deductible, which means you have to research, document, and subtract what it would cost to buy the equivalent foods that are not gluten-free.

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    Guest Christy Pace

    Posted

    I was not aware that a person could deduct the increase in food costs for the required diet for Celiac Disease. I am not sure if I would meet the minimum amounts required but possibly it may be achievable. Thanks for the information regarding the tax deduction as it was very helpful.

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    Guest christine

    Posted

    So basically your saying if I have to buy flour and regular flour costs 2 dollars but gluten free flour costs 4 dollars I can use that 2 dollars I am paying extra as a deduction and that would go under my medical expenses.

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  • About Me

    Howard J. Kass, CPA

    Howard J. Kass is a partner at Zinner & Co. LLP, and has over 30 years experience and has cultivated particular expertise in individual and business income taxes, tax aspects of real estate investment, gift and estate taxes and tax exempt organizations. Howard applies his extensive knowledge and experience to a diverse client base of individuals and companies including closely held businesses in a variety of industries and ownership structures such as C Corporations, S Corporations, Partnerships, and LLCs. Industries served include real estate, manufacturing, retail establishments, insurance agencies, distributors and service companies.


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    Howard J. Kass, CPA
    This is a good summary of the proper tax treatment for the additional costs of complying with a gluten-free diet, under a doctors direction. Let me offer a couple of points of clarification and amplification.
    Revenue Ruling 76-80 is more on point in that it specifically discusses the deductibility of the additional costs one incurs in purchasing a special form of a product versus the normal cost of the non-special version.
    Additionally, if one has to purchase items that they would not otherwise purchase if not for the underlying medical condition (such as xanthan gum) then the full cost of such items are deductible.
    It is important to point out that one of the requirements for deducting a medical expense is that the expenditure must be incurred to treat or alleviate...


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