Many patients ask the question – Is weight loss surgery tax deductible?

This is a question that we actually do not get asked very often because many patients think that if their insurance isn’t covering a procedure that it isn’t medically necessary. In actuality, whether a treatment is covered or not has nothing to do with medical necessity – that is something that is determined by your physician! Even if your insurance is covering your procedure, especially if you have a higher deductible plan, you may still qualify. Keep on reading to find out more!

Understanding the Tax Deductibility of Weight Loss Surgery

Weight loss surgery, also known as bariatric surgery, can be a significant financial investment. Especially if you are self-paying for a procedure such as a gastric sleeve or bypass! However, many people may not realize that some of these expenses can be tax-deductible, potentially easing the financial burden. Here’s a comprehensive look at how you can leverage tax deductions for weight loss surgery.

Eligibility for Tax Deduction

To qualify for a tax deduction, weight loss surgery must be deemed medically necessary. This means that the surgery is not elective but is required to treat a specific medical condition, such as obesity, which is recognized as a disease by the IRS¹. The surgery must be prescribed by a physician and aimed at treating or preventing a disease. At JourneyLite this will always be the case!

Qualifying Expenses

The IRS allows you to deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI is $50,000, you can deduct medical expenses that exceed $3,750². Qualifying expenses include:

• Surgery Costs: The cost of the surgery itself, including hospital fees and surgeon fees.
• Pre- and Post-Operative Care: Expenses related to consultations, follow-up visits, and necessary medical tests.
• Prescription Medications: Any medications prescribed as part of the treatment plan.
• Travel Expenses: Transportation costs to and from the medical facility, including mileage, tolls, and parking fees².

Non-Qualifying Expenses

Certain expenses related to weight loss surgery are not deductible. These include:

• Diet Foods: Costs for special diet foods that substitute for normal meals.
• Health Club Memberships: Membership fees for gyms or health clubs, unless prescribed by a doctor for a specific medical condition³. In many cases our team will be able to write a letter to get these expenses included, however we recommend having a CPA review the information first!

How to Claim the Deduction

To claim the deduction, you must itemize your deductions on Schedule A (Form 1040). Here’s a step-by-step guide:

1. Gather Documentation: Collect all receipts, bills, and documentation related to your medical expenses.
2. Calculate Total Medical Expenses: Add up all qualifying medical expenses.
3. Determine Deductible Amount: Subtract 7.5% of your AGI from your total medical expenses to find the deductible amount.
4. Complete Schedule A: Enter the deductible amount on Schedule A (Form 1040) under medical and dental expenses¹.

Conclusion

Understanding the tax deductibility of weight loss surgery can help you manage the financial aspects of your health journey. By ensuring that your surgery is medically necessary and keeping thorough records of your expenses, you can take advantage of potential tax savings.

If you have any specific questions or need further assistance, consulting a tax professional or the IRS guidelines can provide additional clarity.

¹: IRS Publication 502 ²: IRS Topic No. 502

Feel free to ask if you need more detailed information or have other questions!