WLS Deduction????

Hi Everybody, I'm sitting here trying to get my tax stuff together. We pay to have a professional do it for us. I would totally mess it up. I read on another website that WLS is a deductable expense or maybe a tax credit. Does anybody out there know what the story is on that one??? We paid $1,200 out of pocket for my part of the healthcare...but the insurance paid the rest. Anybody got any answers? Doing taxes makes me nervous..maybe I could put it off for just one more day..right Willby??? Hugs Virginia aka Ginger

I have never done it myself but do know that there are medical deductions you can take. I would give your "tax guy" a call and explain the situation. then they can let you know what all you need to prove your deduc. good luck...every little bit helps Jennifer 357/293/175ish

Ginger, WLS is a medical deduction, but, it has to be a certain percentage (that is what I don't know) of your total income in order to qualify. Just like any other medical expenses. Lori

Here is some Info I have....... Let's Get In Shape Weight-Loss Program Deduction Health Club Membership Deduction 1. The Weight-Loss Program Deduction As you probably know, expenses for medical and dental care and health insurance premiums that exceed 7.5% of a taxpayer's adjusted gross income (AGI) are fully deductible on Schedule A of Form 1040, assuming that the taxpayer itemizes deductions. New IRS Ruling Generally, an expenditure that is merely beneficial to the general health or well being of an individual is not an expenditure for medical care. Many years ago the IRS ruled that the cost of participating in a weight-loss program is not deductible if the reason for doing so is to improve the taxpayer's appearance, general health, and sense of well being instead of curing a specific ailment or disease. Earlier this year (2002), however, the IRS issued a revenue ruling that explains how expenses for weight-loss programs may qualify as a medical deduction. An Example: Al and Bob Here's an example based on the new IRS ruling. Two taxpayers (we'll call them Al and Bob) both participate in a weight-loss program. Al is diagnosed by a physician as obese, but does not suffer from any other disease. Bob is not obese but suffers from hypertension. Bob has been directed by a physician to lose weight to treat the hypertension. Al and Bob both pay a fee to join the program and to attend periodic meetings, and also purchase diet plans and booklets. At the meetings the participants develop a diet plan, receive diet menus and literature, and discuss problems encountered in dieting. Both purchase reduced-calorie diet food items. The IRS notes that neither person's costs are compensated by insurance or otherwise. A physician diagnosed Al as suffering from obesity, which is a recognized disease. Therefore, the cost of Al's participation in the weight-loss program as treatment for the obesity is an amount paid for medical care under Internal Revenue Code Section 213(d)(1). Although Bob is not suffering from obesity, his participation in the program is part of the treatment for his hypertension. Therefore, Bob's cost of participating in the program is also an amount paid for medical care. Al's and Bob's costs are deductible to the extent they (1) are not reimbursed by insurance or otherwise, and (2) exceed 7.5% of their AGI. Although diet foods may be part of a weight-loss program, they are substitutes for the food the taxpayer would normally eat. Therefore, diet foods are not deductible medical expenses, even for taxpayers whose disease qualifies them to deduct the weight-loss program costs. You may want to file an amended return! The conclusions in this ruling apply not only to current and future years' returns, but also to any years for which the statute of limitations is still open. If you have paid significant amounts for a physician-directed weight-loss program within the last three years, there may be an opportunity to amend a 1999, 2000 or 2001 return to claim a refund. 2. The Health Club Membership Deduction In a new information letter, the IRS stated that since it now recognizes obesity as a disease, health club membership fees incurred primarily to prevent or alleviate obesity may be deductible medical expenses (INFO 2002-0077). The IRS adds, however, that the Tax Court has ruled against taxpayers seeking to deduct amounts paid for participation in a weight-loss program even when a doctor prescribed participation in the program as treatment for specific diseases. The Tax Court based these opinions on the fact that there were weight-loss and exercise alternatives to the taxpayer's weight-loss program. Additional Facts and Cir****tances In light of these Tax Court decisions, the IRS will consider additional facts and cir****tances in determining whether membership fees incurred to prevent or alleviate obesity are deductible, including: (1) the location of the health club (2) whether another health club is available closer to the taxpayer's home (3) the types of activities available (4) the services included in the club's membership fee (5) whether the taxpayer could safely fulfill his or her exercise needs without joining a health club Disclaimer: The content of this article is NOT intended as legal tax advice. Before making any tax or financial decisions, check with your own accountant or attorney. Important NOTES Expenses for weight-loss programs, health club membership fees, and other amounts that qualify as a medical deduction can be paid through an employer's health flexible spending account (FSA) . Under a typical health FSA, medical expense reimbursement accounts are established for participating employees. Typically, these accounts are funded with employee pretax contributions uniformly withheld from each paycheck throughout the year. The balances in these accounts are used to reimburse deductible medical expenses incurred during the year, subject to a reimbursement maximum. Unless a health FSA is used, employee medical expenses not otherwise reimbursed by a health plan must be paid with after-tax dollars. Furthermore, these expenses are not deductible if the employee does not itemize deductions and does not have total medical expenses exceeding the 7.5% of AGI threshold. A health FSA allows an employee to fund such expenses with pretax dollars and eliminates the need to try to claim a deduction on the employee's tax return.

Karen, Thank you sooo much for the info. I hope that it helps others out there too. After reading this I still get confused...but I will print it and bring it along with me for our tax appointment. I guess that's the best I can do right??? Hugs, Ginger

Virginia, great question and wonderful answers... thank you. so nice to see your smiling face!!! hugs, Aunt Pam