Diets And Tax

Is Your Diet Tax Deductible?

Anybody who is overweight, and has been researching diets and weight loss programs, or actually participating in them, will tell you that diets are expensive. Losing weight is big business, and the companies exploiting the market are making big money. People are willing to pay to lose weight, so they contribute to the upward pressure on costs.

What if you decide to go on a diet or join a weight loss program? Would it not be nice if those expenses were tax deductible. After all, you may argue, you are trying to improve your health, so does the government not benefit from that in a way?

Well, if you live in the US, the Internal Revenue Services, at least partially, agree with you. Since April 2002, the IRS has recognized some weight loss expenses as tax deductible, under the heading of medical expenses.

According to that 2002 ruling, the IRS says that:

"...Uncompensated amounts paid by individuals for participation in a weight-loss program as treatment for a specific disease or diseases (including obesity) diagnosed by a physician, are expenses for medical care that are deductible under § 213, subject to the limitations of that section." (IRS Ruling, April 2, 2002)

This means that, for the average taxpayer, the cost of weight loss programs, if they are recommended by your physician for the treatment of obesity, or conditions related to obesity, MAY be deductible on your taxes! That is "may be" not "definitely are."

Who qualifies for tax relief on their weight loss programs taxes?

In order to qualify to deduct the cost of your weight loss program, under the 2002 ruling, you have to itemize the deductions on your taxes. You are allowed to deduct the costs of weight loss treatment, but only if they are not reimbursed. Additionally, you are only allowed to deduct expenses that are in excess of 7.5% of your adjusted gross annual income.

Am I able to deduct my weight loss program although I am not medically obese?

It is possible that your physician will recommend a weight loss program if you suffer from a chronic disease related to being overweight, but not necessarily obese. For example, if your doctor has recommended weight loss as a treatment for diseases such as hypertension, type 2 diabetes, high cholesterol or heart disease, you might be eligible to apply the tax deduction.

Which kinds of weight loss expenses are tax deductible?

You are allowed to deduct treatments recommended by your doctor, if they are specific to weight loss and weight maintenance. Those treatments include, but are not necessarily limited to: hospital based weight loss programs, FDA approved weight loss drugs, bariatric surgery (stomach stapling or gastric bypass), dieticians, nutritionists, behavioural modification programs, exercise programs and even some commercial weight loss programs like Weight Watchers and Jenny Craig.

What weight loss expenses or not allowed for tax deduction?

Other types of expenses that are not allowed for tax deduction are: over the counter appetite suppressants, health club dues, low fat foods, nutritional supplements, and exercise equipment. Another treatment not allowed for tax purposes is liposuction.

Are weight maintenance programs deductible?

Weight maintenance programs may be tax deductible, if it is the case that your doctor has decided it is medically necessary to treat your condition. In other words, if maintaining your weight is part of a treatment recommended by a doctor, it could be eligible as a tax deductible item.

Do I have to supply documentation of my doctor's orders and my expenses?

There is no need to submit the documentation with your tax forms, but it is wise to keep the following in case of audit: your doctor's written recommendation that you lose weight for treatment of a specific condition (and remember that obesity is an official disease), plus receipts for the all costs that you have deducted.

What if I didn't lose weight? Can I still apply the deductions?

There is no need to show an improvement in your condition in order to deduct the costs, so the answer is yes.

That is an outline of the US tax regulations for weight loss expenses. For other countries, you will need to check local laws.