Tax Deductions, Celiac Disease

Still Life of 2009 Receipts

Monday is tax day with our very quirky-fun accountant whose looks resemble Fargo’s William Macy. This means that I’ll spend a couple of hours this weekend sifting through hundreds of accumulated grocery receipts that I’ve stashed in a copper bucket all year.

Even if there’s only one gluten-free item on a receipt, it will be accounted for.

Many celiacs don’t know that YOU CAN DEDUCT the additional expense on store-bought gluten-free foods. But only the difference between the gluten-free item and non-gluten-free item can be claimed. If there is no difference between the cost of let’s say a gluten-free package of Oreo cookies and non-gluten-free, you cannot claim it.

In 2008 I spent more than $2,000 on gluten-free foods, which included everything from specialty breads, baked goods, flours, pastas, and cereals to name a few. I anticipate an even higher amount for 2009 considering the availability of new gluten-free foods compared to 2008. The market for gluten-free foods is growing fast.

Note that this tax benefit does not apply to those with gluten-intolerance -- you must be medically diagnosed as having celiac sprue.

Scott Adams, writer for Celiac.com provides the following advice...

The following guidelines were received from the Oct. 1993 CSA/USA National Conference in Buffalo, NY:

1) You can claim only the EXTRA COST of the gluten-free product over what you would pay for the similar item at a grocery store. For example, if wheat flour costs $0.89 per 5 lbs. and rice flour is $3.25 per 5 lbs., the DIFFERENCE of $2.36 is tax deductible. You may also claim mileage expense for the extra trip to the health food store and postal costs on gluten-free products ordered by mail.

2) The cost of xanthan gum (methylcellulose, etc.) used in gluten-free home baked goods is completely different than anything used in an ordinary recipe, so in the opinion of the IRS, the total cost of this item can be claimed.

3) Save all cash register tapes, receipts, and canceled checks to substantiate your gluten-free purchases. You will need to prepare a list of grocery store prices to arrive at the differences in costs. You need not submit it with your return, but do retain it.

4) Attach a letter from your doctor to your tax return. This letter should state that you have Celiac Sprue disease and must adhere to a total gluten-free diet for life.

5) Under MEDICAL DEDUCTIONS list as Extra cost of a gluten-free diet the total amount of your extra expenses. You do not need to itemize these expenses.

For more information, go to:

http://www.celiac.com/articles/279/1/Tax-Deduction-for-Gluten-Free-Foods-as-a-Medical-Expense-for-Diagnosed-Celiacs-Only/Page1.html