International Revenue Service Clarifies Deductible Medical Expenses

Warning Against Misleading Marketing

According to Finger Lakes, the Internal Revenue Service (IRS) issued a bulletin to clear up misunderstandings about what counts as a deductible medical expense. The International Revenue Service made it clear that costs related to overall wellness like specific foods and fitness equipment can’t be deducted or reimbursed through health flexible spending arrangements, health savings accounts, or medical savings accounts. This International Revenue Service clarification was prompted by misleading claims in aggressive marketing campaigns. International Revenue Service Commissioner Danny Werfel emphasized sticking to tax laws for genuine medical expenses and warned against falling for marketing that wrongly represents personal expenditures as eligible for reimbursement.

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Doctor’s Note Doesn’t Automatically Qualify Non-Medical Expenses for Pre-Tax Deductions

Getting a doctor’s note doesn’t automatically make non-medical expenses qualify for pre-tax deductions said International Revenue Service. To avoid confusion and ensure taxpayers don’t face unexpected tax issues, penalties, or denied claims due to misclassified expenses the International Revenue Service suggests checking the frequently asked questions on its website. This guidance is particularly important for understanding what counts as a medical expense related to nutrition, wellness, and general health. The International Revenue Service shared an example involving a diabetic whose claim for low-carb foods was denied even with a doctor’s note, as food, in general, doesn’t qualify as a deductible medical expense.