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New Flex Plan Deduction Information:


The IRS Okays Weight-Loss-Related Medical Deductions

The Internal Revenue Service has approved the use of pre-tax funds from flexible spending accounts for some expenses associated with weight loss for a specific disease or ailment, if that program is recommended by a physician for treatment of a disease and not just to improve the participant's general health and well-being. This marks the first time that "obesity" has been listed as a disease that can be treated.

Acceptable deductions can include the costs for joining and attending weight-loss programs and expenses for diet plans and books that aren't covered by insurance. Unacceptable deductions would include costs for diet foods, since they just substitute for foods that would normally be consumed. "Losing weight for appearances or to maintain your good health is not a qualified medical deduction," said John Sapienza at IRS headquarters in Washington, D.C. Those submitting the deductions "should have a letter from a doctor backing up the expense, just as they would with any other qualified expense."

 

Source: HRFocus, Compensation & Benefits News, July 2002.