Medcial Expense Deduction - Questions

[TAXNJ]

ANOTHER DEFINITION if you want to consider it

One would think the definition of a "prescription drug" would be somewhat self-explanatory. Doctor writes a prescription, patient's insurance company considers payment, pharmacist dispenses.

While there obviously are gray zones for other items "suggested" by a doctor (think daily aspirin, vitamin supplement, shoes for a regular walk) it is a stretch for those to cross the threshold into deductibility.

OTOH, you have cases like ibuprofen: Buy a bottle of same at pharmacy and take four 200 mg tablets for injury. OTC = no deduction. Doctor writes prescription for 800 mg tablets, and then you have a clearly deductible prescription medication.

FWIW, I usually go by annual printout of prescription drugs that any pharmacy will provide upon request.

From current IRS Pub 502:
You can include in medical expenses amounts you pay for prescribed medicines and drugs.
A prescribed drug is one that requires a prescription by a doctor for its use by an individual.
You can also include amounts you pay for insulin.
Except for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed.

FE

-What Is a Prescription?
For purposes of these rules, the Notice clarifies that a prescription means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.

-What About Other OTC Items?
The Notice makes clear that the requirement to get a prescription does not apply to OTC items that are not medicines or drugs, including equipment such as crutches, supplies such as bandages, and diagnostic devices such as blood sugar test kits. These items can qualify for medical care if they otherwise meet the tax code’s definition of medical care, which includes expenses for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting
any structure or function of the body.

However, expense for items that are merely beneficial to the general health of an individual, such as an expenditure for a vacation, are not expenses for medical care.

SOURCE: LAWLEY BENEFITS GROUP

http://www.lawleyinsurance.com/wp-content/uploads/2014/09/IRSGuidance-OTCDrugs.pdf

[FEDUKE404]

IRS cite

Does this have anything to do with the underlying issue of taking OTC medications as a deduction on Schedule A ? ?

FE

[TAXNJ]

Does this have anything to do with the underlying issue of taking OTC medications as a deduction on Schedule A ? ?

FE

You could be correct whether if and how IRS Notice 2010-59 would apply (Original Poster knows the specifics of the scenario and makes that decision), but think that the following does apply:

Section 213(d) (3)Prescribed drug.—
(b) Limitation with respect to medicine and drugs
An amount paid during the taxable year for medicine or a drug shall be taken into account under subsection (a) only if such medicine or drug is a prescribed drug or is insulin.

Think Original Poster has enough information at this point.

[JohnH]

Many thanks to everyone for the wide-ranging discussion. I lean toward the deduction being questionable at best, even if we stay away from the "Prescription Drug" issue. On that score, there's no question it's non-deductible.

I'm comfortable with the deduction under the "supplement" category because it isn't a general-health recommendation. Rather, it is universally recommended as part of the course of treatment for a specific illness. But it's clear even this might be questioned. If the deduction is taken, then at about $300 - $400 per year it wouldn't be the basis for a serious fight in an audit.

[taxea]

A written recommendation by the dr for an OTC drug should be kept in the client file.
As for the lab tests....I wouldn't include them if there was no dr. order. The SOP way is the dr orders the tests, the client goes to lab and a dr. appt is made when the tests are completed and available to the doctor.