Friday, November 4, 2011

GF Diets Can Get a Tax Break!

Good Morning and Happy November again!

I love November . . . it's the official beginning of the Holiday Season (plus my birthday month)!  But I also know it can be the beginning of a financially strapping season for everyone, but especially folks on special diets - especially Gluten Free diets!  Since I'm aware of just how expensive it is to eat GF, I'm always on the lookout for ways to help you save money.  This is an article I found this morning and thought that all of the GF folks out there could use this info!  

November 4, 2011

How To Get a Tax Break With Gluten Free Foods

The gluten free food industry has become a booming business.  Many of you going gluten free are looking to help reduce costs when buying specialty products.  The article below was sent to me by someone who has experience in the tax field and I thought you might find it useful…

Tax Deduction Guide for Gluten-Free Products

Individuals diagnosed with celiac disease may be able to receive tax deductions for expenses associated with gluten-free foods and products. However, there are a few catches to obtaining them.  Here are a few tips to help you through all the procedures and paperwork:

Step 1: Get A Doctor’s Note

Request an official, written celiac diagnosis from your doctor.  Submit this documentation with your other completed forms (see Step 4). Make sure to keep a copy for your records!

Step 2: Save Your Receipts

Keep receipts of all gluten-free purchases from grocery stores, bakeries and anywhere else you buy gluten-free items.

Step 3: Break Out the Calculator

List the prices of gluten-free foods compared to those of regular foods. The difference between those prices is tax-deductible. For example, if a pound of wheat flour costs $0.89 and a pound of almond flour costs $8.25, then you may deduct $7.36 for each pound of almond flour purchased.
Products like tapioca starch are completely tax-deductible as they have no “regular” counterpart but are purchased to meet your dietary needs. Shipping costs for online purchases are also permissible deductions.

Step 4: File Your Claim

Fill out form 1040 schedule A for medical deductions.
Refer to:
IRS Publication 502
Revenue Rulings: 55-261, 76-80, 2002-19 and 67 TC 481
Cohen 38 TC 387
Flemming TC MEMO 1980 583
Van Kalb TC MEMO 1978 366
Feel free to cite these references in your tax paperwork. For specific circumstances, contact an accountant.
**The above information should not constitute the idea that buying processed foods is a necessity for following a healthy gluten free diet.  Quite the contrary, it is more health promoting to stick with fresh vegetables, fruits, and properly farmed meats (grass fed, pastured).
All the best,
Dr. O – The Gluten Free Warrior

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