IRS declares obesity a disease

The section of this story that's interesting (and maybe money-saving) is:

"Changes in federal health-care policy may soon provide wider access to treatment. Last year the Internal Revenue Service declared obesity a disease and made expenses related to treatment-exercise programs, bariatric surgery and commercial weight-loss programs like Weight Watchers-tax-deductible. And the agency that controls Medicare will soon decide whether to reclassify as well. If it does, it will be the first step toward allowing millions of overweight Americans to seek treatment."

My DH is going to do some research and see if we can take our gym membership fees off our income taxes. I'll let the group know what we find out. If anyone out there is a tax accountant (in the USA), I'll like to hear your comments on this.

I'm just going to win the multi-state lotto and not worry about if the IRS deducts it or not....LOL
300/247/175

The problem is that there are two conflicting rulings. The one that says,
"You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose." supersedes the one that says "you can include expenses that are incurred to treat medical illnesses." The IRS is quite clear on this.

So you can deduct the cost of a physical therapist, you can deduct the costs of a personal trainer (if required for treatment of obesity) but you cannot deduct the dues to belong to a gym that is organized for
"business, pleasure, recreation or other social purpose" even if that isn't your purpose in going there. And that's pretty much 100% of the commericial gyms, with a tiny exception of physical therapist setups.

My flexible benefits plan will not reimburse the cost of belonging to the
Y based on settled case law on this point. I even called the IRS and talked with the guy who authored the new obesity regs and he said that it was contradicted by existing law to deduct club membership dues.

I'm not saying your CPA didn't deduct it, I'm just saying it wouldn't stand up on audit. And what you can get past your CPA on your schedule A is a lot looser than what you can get past a Flexible Spending Plan
Administrator.

Wendy, a tax accountant who SPECIALIZES in this stuff

Can't your only write off medical expenses that are 7.5% above your gross adjusted income anyway??

I'd say covered. I'd submit the receipts along with a bunch of others, though.

wendy, i believe that with a physician's prescription that are allowances.

I will have to check out my flex spending account to see what it covers.
Unfortunately, I maxed mine out this year AND bought a 3 yr membership to a healthclub last month! I don't think either will hep me.. Oh well.

We were told by our accountant that the medical portion of my HMR program that wasn't covered by insurance (all of it) would be tax deductible, but the food (shakes, etc) would not be, nor my Curves membership and various and sundry fitness equipment and other expenses.

Then the question would be that if the doctor prescription thing works, can you put your gym membership on a flexible spending plan (cafeteria plan) and get the money pretax through your employer?
Heck, if the caferteria plans now cover OTC meds like aspiren and cold meds, then it would suffice to say a "prescription for gym membership" would work.

My gym has a large physical therapy unit, hhhmmmm....

<note - this is a current huge concern of mine, because the company is switching health insurance again this year to a new breed of health insurance - consumer drivin plan. Whereas for the young and healthy, its a good low cost plan. But the prescription plan is part of the whole plan, so if you have any medical condition, ie allergies, birthcontrol, etc... you pay top dollar for prescription costs and most of it comes directly out of your own pocket. Its got me in a big uproar over the high costs .. and yes, those high costs of health insurance are partially to be blamed on the obese and their medical conditions (diabeties, heart, etc). Its a real pisser for someone healthy who wants insurance for those "just in case" emergencies>

Way ahead of you.

The IRS does not consider exercise to be treatment for obesity.

Seriously.

You cannot deduct health club memberships in any way, shape or form.