Gluten Free Tax Deduction/gluten vaccine

[Sheila]

The latest issue of Lifeline, the Celiac Sprue Assoc., (2011 volume XXXI No.4) newsletter has an article about deducting excess costs of following a gluten free diet. It's interesting and certainly worth looking into.

There is also an article about a company called ImmusanT. They have raised 20 million dollars to advance development of an immunotherapeutic vaccine, Nexvax2. This development is supposed to allow celiacs to consume a normal diet. I wonder how that would effect those of us with both celiac and MC.

The website for Celiac Sprue Assoc. is www.csaceliacs.org.

Sheila W

[jmayk8]

I write off my gf foods/meds every year for my taxes. I just needed a letter from my doctor who diagnosed me that explained that I had celiac and I am supposed to follow a gf lifestyle.

[MBombardier]

Sheila, the highest online issue I could find is #2. Can you provide a link to #4? Is this available for someone with MC rather than celiac?

[Sheila]

The author of the article is Howard J. Kass, CPA; Zinner & Co. LLP, Cleveland, Oh. In the article he says that he has been writing about this subject for the past 20 years and directs people to a website:

www.zinnerco.com search the website for "gluten free"

I didn't go to the website, just read the article. I hope this help.

Sheila W.

[MBombardier]

Thanks, Sheila!

[Gloria]

The letter goes on to cite specific Revenue Rulings and court cases, as well, concluding that “if a taxpayer can establish the medical purpose of the diet, such as through a physician’s diagnosis, then to the extent the cost of the food for the special diet exceeds the cost of the food that satisfies a taxpayer’s normal nutritional needs if the special diet were not required, the excess cost is an expense for medical care under section 213(d)”. The letter concluded by saying that they would consider modifying the language in Publication 502, Medical and Dental Expenses, to reflect that clarified information.

There are a couple of caveats to this ruling:
1) It sounds like a physician needs to verify the medical purpose of the diet
2) It is a medical expense deduction, which means:

• a) one must use the "long form" and itemize deductions on Schedule A, and
  
  b) the medical deductions must be over 7½% of the adjusted gross income before they can be deducted. Most people cannot include their insurance premiums in this deduction because they are already not taxable income on the W-2 form from their employer.

I stopped looking for medical deductions after they imposed the 7½% minimium. I'm fortunate that we've never had our medical expenses to be greater than 7½% of our income.

Gloria

[tex]

Gloria,

You're so right. For years, (up until this one), I have tried to justify itemizing my deductions, because of medical/drug expenses, and every year, they are close, but no cigar. I'm not going to waste my time, this year, or in the future.

Also, it's rarely worth the hassle, because as you point out, the food is not deductible - only the extra expense above conventional food is deductible. If you eat mostly basic food staples, as I do, (meat, spuds, eggs, bacon, etc.), the only difference for me would be an occasional box of cereal, or pancake mix, and that price difference over a box of Cheerios doesn't add up to much, because all food is not exactly cheap, these days. If I can't get medical expenses to work, the food deduction ain't worth the hassle, (not in my case, anyway).

Also, I get the impression that some auditors love to check such things, because the law requires detailed records, meaning that they can require you to verify, (with receipts), the cost differential of every item that is included in your deduction. IOW, the law makes it tough on the taxpayer, and easy on the agent, because the burden of proof is entirely on the taxpayer.

The typical final score:

IRS - 1

taxpayers with MC - 0



Tex

[MBombardier]

Oh, yeah--I forgot about the 7.5%. Almost made it this year because of unemployment and we pay our own health insurance premiums. Oh, well...

[Zizzle]

I'd love a standard tax credit, albeit small, for ceiliacs and others diagnosed with gluten intolerance. Surely people could agree that the diet costs more than the average diet. I imagine there are food industry lobbyists that would be in favor of it! Although I suppose diabetics would need a tax credit too, and then autistic kids, etc, etc, etc. It would never end.

[tex]

And, if the people who revise the tax codes get their guidance from guys like Dr. Fasano, they'll decline a tax credit for GF foods, because most people who buy that stuff aren't really sick - they're just "gluten-sensitive."

Tex