Question:
Are reconstructive surgeries tax deductable?
I had a lower body lift and liposuction done in October. This was not just for cosmetic reasons, but for medical reasons (lower back pain), however insurance would not pay for it so it was self pay. Has anyone deducted such costs from their U.S. Taxes? — Tonya C. (posted on November 24, 2004)
November 24, 2004
It all depends on multiple variables if deducting it will do you any good.
It depends on your income and if what you spent out of pocket is a certain
percentage of your adjusted gross income I believe. Best thing to do is
check with a tax expert.
— Cathy S.
November 24, 2004
If it's reconstructive, and deemed medically necessary, it might be
deductible depending on the factors noted by the first responder to your
post.<P>But if it's deemed cosmetic, it is explicitly *not*
deductible according to the IRS publication I read on the subject. In my
case, I knew my insurance company wouldn't pay for mine (and wouldn't
consider it reconstructive), so I will make no attempt to deduct it as I
have no easy way of proving it wasn't cosmetic. For those who got
insurance coverage, presumably, they now have some proof that it was
"reconstructive" and therefore medically necessary. Dunno that
for sure, though -- just because you're insurance company uses those terms
doesn't mean the IRS will use them or be bound by them. And if you want to
go toe-to-toe with the IRS on deductibility of self-pay plastics -- you're
braver than me. Just the spectre of IRS agents looking at my before 'n'
after photos was enough for me to abandon the whole idea. ;-D<P>Just
my opinion -- and not legal advice, for I am not a tax attorney, just a
timid little taxpayer here. ;-)
— Suzy C.
November 24, 2004
I was told by my PS that any procedure that was to treat obesity is tax
deductible. I have yet to validate with any other source. Now there are
many other rules that the IRS applies on whether you're eligible to take
those deductions, so I would defintely consult your tax accountant.
— rleffler
November 24, 2004
Nope, it is not. My husband contacted our CPA on this exact question. He
gave us a link to the IRS. The IRS considers these surgeries to be cosmetic
in nature.
— ChristineB
November 24, 2004
In general the answer is no. However, since my insurance did deem some of
my procedures medically necessary and they clearly exclude cosmetic surgery
I am going to deduct the balance I had to pay, including all of the trips
to the docs office post op, which is an hour drive each way. Had I not
gotten that determination from my insurance then I do not think it would be
worth gambling.
<p>To the poster that thought anything related to obesity is
deductible the answer is yes. However, by the time you chose
reconstructive/plastic surgery you no longer are treating obesity. You are
treating the end result of being obese, which is not identified as being
deductible.
— zoedogcbr
November 24, 2004
"DEFINATELY YES"!!!!!!.
There is a ruling in federal tax court as of 2-3 years ago that makes it
100% tax deductable. I was given all the info by my plastic surgeon, Dr.
Gavin Dry (seattle, Kirkland--WA). He specializes almost exclusively in
plastics afer bariatric surgery and therefore has alot of skills and info.
that most others dont have.
He gave me a copy of the tax court ruling and I passed it along to my
accountant. My CPA deducted it @ 100% and quoted the ruling #. There was no
problem at all. It was even directly looked at by the IRS.
Essentially, they ruled that mobid obesity is a disease; and the extra skin
and fat that results after massive weight loss is a complication of that
disease and therefore not considered cosmetic from a tax perspective and is
100% deductable. Also ruled/pointed out was that ins. co.'s can do what
ever the @#^&!@ they want.
If there is any interest I can see if can ge the tax info; or you can just
cal Dr Dry's office-----they are all great and would be happy to help
(425-821-6000)
Julie H
— Julie H.
November 24, 2004
Julie, so what is the tax court ruling number for the deduction?????
— ChristineB
November 24, 2004
Obviously you're getting a mixed bag of answers, here, eh?
In MY experience, I had heard this too, and needing quite a bit of plastics
after also loosing a large amount, I knew there was a huge chance I'd end
up paying out of pocket as well so I did my research.
I did find a link on the IRS website that says such surgeries ARE tax
deductible IF I believe the wording is, "they are deemed a medically
necessary follow-up to weight loss surgery." I wish I had the link for
you, but you can find the evidence yourself pretty easily by doing a google
and searching the IRS site.
So I suppose the answer is yes, it could be tax deductable, it's just going
to be a matter of making sure that your paperwork shows documentation that
somewhere along the line, a doctor deemed it necessary because of your
pain.
Good luck, hon!
Christie
— christied
November 25, 2004
http://www.irs.gov/pub/irs-pdf/p502.pdf
<br><br>
Look at this document from the IRS. You can deduct medical treatment that
is 7.5% above your adjusted gross income. Remember you must provide
medical necessity proof especially if audited.
— Cathy S.
November 26, 2004
Here is the ambiguity right from Publication 502. It sort of indicates
under the Cosmetic Surgery section that it might be a legit deduction if
you can prove it fixes a disfiguring deformity.
<p>Weight-Loss Program -
You can include in medical expenses amounts you pay to lose weight if it is
a treatment for a specific disease diagnosed by a physician (such as
obesity, hypertension, or heart disease). This includes fees you pay for
membership in a weight reduction group and attendance at periodic meetings.
You cannot include membership dues in a gym, health club, or spa as medical
expenses, but you can include separate fees charged there for weight loss
activities.
<p>You cannot include the cost of diet food or beverages in medical
expenses because the diet food and beverages substitute for what is
normally consumed to satisfy nutritional needs. You can include the cost of
special food in medical expenses only if:
<p>The food does not satisfy normal nutritional needs,
<p>The food alleviates or treats an illness, and
<p>The need for the food is substantiated by a physician.
<p>The amount you can include in medical expenses is limited to the
amount by which the cost of the special food exceeds the cost of a normal
diet. See also Weight-Loss Program under What Expenses Are Not Includible,
later.
<p>
<p>Cosmetic Surgery - Generally, you cannot include in medical
expenses the amount you pay for unnecessary cosmetic surgery. This includes
any procedure that is directed at improving the patient's appearance and
does not meaningfully promote the proper function of the body or prevent or
treat illness or disease. You generally cannot include in medical expenses
the amount you pay for procedures such as face lifts, hair transplants,
hair removal (electrolysis), teeth whitening, and liposuction.
<p>You can include in medical expenses the amount you pay for
cosmetic surgery if it is necessary to improve a deformity arising from, or
directly related to, a congenital abnormality, a personal injury resulting
from an accident or trauma, or a disfiguring disease.
<p>Example.
<p>An individual undergoes surgery that removes a breast as part of
treatment for cancer. She pays a surgeon to reconstruct the breast. The
surgery to reconstruct the breast corrects a deformity directly related to
the disease. The cost of the surgery is includible in her medical
expenses.
<p>I'd love if someone could post the other things that were
mentioned that addressed where we can definitely deduct it because it is a
side effect of being morbidly obese.
— zoedogcbr
November 26, 2004
Many patients fall into the category "non-cosmetic, non-covered."
I.e. they have excess skin but either have not or do not wish to go
through the 6 month period of documenting a rash, visits to family doc, etc
that INS often wants. These are candidates for the tax break. I see very
few WLS patients who have strictly cosmetic problems.
— DrL
November 30, 2004
I deducted mine and I kept pictures to show it was not just for cosmetic
purposes. If I'm audited and it becomes an issue, I will fight it. If I
lose, I'll just have to pay.
— Lisa N M.
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