Untitled Document

Tax Deductions for Allergies
and Chemical Sensitivities

Section 213 of the Internal Revenue Code applies to persons who itemize their deductions on Schedule A of Form 1040. Total medical expenses, which now include drugs and medicines, are deductible to the extent they exceed 7.5% of adjusted gross income. In addition to the obvious deductions, items such as special filters and air cleaners and the costs of their operation are deductible expenses. Vitamins and supplements, when prescribed by a doctor, are treated as drugs and medicines. All transportation costs for medical care are deductible including bus, taxi, train or airfare as well as out-of-pocket costs for doctor, dental and hospital trips. Auto mileage is deductible at 9 cents per mile. This deduction includes the cost to transport and visit sick dependents.

Most importantly, Special Foods!^TM products and food supplements qualify as a medical deduction when they are prescribed by a physician or other health professional for alleviation or treatment of an illness. (The IRS does not grant deductible status when the foods are considered to be for nutritional needs.) A leading case is that of Dr. Theron Randolph (Theron Randolph, 67 TC 481), where the Tax Court held that a deduction was allowable for "the additional cost of chemically uncontaminated foods". Uncontaminated foods require special care in growing, packaging, and transporting that result in a higher retail cost. The benefit received by patients was relief from medical problems. Similarly, costs for unusual foods required because of allergic reactions to foods are deductible expenses, because they are eaten to provide relief from medical problems.

It is important to note the wording, "for alleviation or treatment of an illness". The IRS regularly refuses deductions for substituting foods "for nutritional needs", such as special diabetic diets or self-imposed vitamin and organic food plans. When prescribed by a physician or other health professional for alleviation or treatment of an illness, the added cost of any special foods over that of commercial foods is deductible. In other words, when you cannot eat regular foods, the costs of the special foods above the costs for common foods you are replacing in your diet, are deductible. For example, if you eat fresh malanga tubers, you would deduct the difference between the cost of malanga tubers and the cost of white potatoes, the item the malanga tubers would be replacing. If you eat malanga flour, you would deduct the difference between the cost for malanga flour and the cost of regular wheat flours. When you use malanga noodles, you would deduct the difference in price between malanga noodles and regular wheat noodles.

Other deductible expenses should include: 1) extra shipping costs, and 2) the additional mileage for shopping over that of local grocery trips, at 9 cents per mile.

Finally, extensive documentation is essential in case of a tax audit. Keep all receipts and be sure your health care professional gives you a prescription before you incur expenses.