Napier & Company, LCC

Over-the-counter drugs are those purchased without a prescription. These typically can not be deducted as medical expenses on your individual tax return. If you have an employer health flexible-spending plan however, the costs of these same drugs may be reimbursed tax free. A health flexible spending account is an account set up through your employer that you can use to pay for medical expenses. The employer sets up these accounts through a plan administrator who specializes in flexible spending plans. Pre-tax money is taken out of wages through regular, equal payroll deductions, and is returned to the employee once a reimbursement request is made. By utilizing the flexible-spending account, these medical expenses are now tax deductible, whereas otherwise they would be disallowed. While over-the-the counter drugs qualify for reimbursement, dietary supplements do not.

Weight loss programs may also be deductible as a medical expense, but only if it is for the treatment of a specific disease diagnosed by a physician (i.e., obesity, hypertension or heart disease). Deductible expenses include fees paid to join a weight reduction group or meeting. Items not deductible include membership fees for a spa, health club or gym. However if there are additional fees for weight-loss activities within these venues, then they would qualify for a deduction. Diet food or beverages are generally not deductible because these would substitute what is normally consumed. Specialty foods may be deductible if they’re used in treatment and they don’t satisfy normal nutritional needs, and if the needed food or beverage is substantiated by a physician.