This tax year (2000) marks the first time taxpayers can deduct the cost of weight loss programs as a medical expense. The AOA successfully lobbied the Internal Revenue Service (IRS) to revise its policy to give tax relief to many individuals who pay out-of-pocket for weight loss programs.
"Treatment for weight loss has been ignored for too long," said AOA President Richard Atkinson, M.D. The IRS states in its new policy that "you can include in medical expenses the cost of a weight-loss program undertaken at a physicians direction to treat an existing disease (such as heart disease). But you cannot include the cost of a weight-loss program if the purpose of the weight control is to maintain your general good health."
The AOA led a coalition of nine other organizations that petitioned the IRS to allow for weight loss treatment deduction. The AOA also submitted substantial evidence indicating that obesity is a disease, and that weight loss by an obese person prevents the onset of disease.
"The new IRS policy will provide much needed assistance to individuals and families faced with devastating medical bills incurred from treating conditions that can be alleviated with weight loss," said AOA Executive Director Morgan Downey. "The policy change, which appears in the IRS Publication 502, would assist taxpayers who itemize medical deductions or employees who have a medical savings account (MSA) or a flexible savings account (FSA) with their employer."
Treatment for weight loss includes behavioral counseling, nutritional counseling, pharmacology, and surgery. "Items such as health club dues, over-the-counter products, and nutritional supplements would not be included," said Downey. "Receiving direction from a knowledgeable physician on the appropriate treatment or combination of treatments is important for comprehensive, successful treatment," added Atkinson.
Medical expenses are tax deductible if they amount to more than 7.5 percent of a taxpayers adjusted gross income. The AOA has produced a document titled, A Taxpayers Guide on IRS Policy to Deduct Weight Control Treatment to help taxpayers understand the new policy.