Medical Deductions for Gluten-Free Foods—There’s Relief for Celiacs

By: Gillian Olins, PhD on March 22, 2013

If you (or a dependent) have celiac disease, you may be able to deduct expenses associated with your medical care on your individual income tax return. But did you know that other costs associated with a gluten-free diet may also be deductible?

Gluten-Free Food

The cost of gluten-free food that is in excess of the cost of normal food (i.e. gluten-containing) can be deducted as part of your medical expenses.  For example, if a loaf of gluten-free bread costs $4.50 and a similar loaf of gluten-containing bread costs $2.75, you can include the excess cost of $1.75 in your medical expenses.

You can deduct the full cost of special gluten-free items that you require.  For example, xanthum gum is used specifically in gluten-free recipes, but has no comparable counterpart in standard recipes.

Shipping Costs

If you order gluten-free foods to be delivered to your home, the cost of shipping can be deducted. Many food manufacturers now offer online ordering, even for perishable items, such as baked goods.  It’s easy to forget that an extra trip to the store can often cost more than having an item shipped. (See our city listings for food stores and bakeries).

Travel Expenses

If you need to travel to buy gluten-free foods at grocery stores or bakeries, the cost of your transportation is deductible.  In 2012, you can deduct 23 cents per mile when you use your vehicle for these trips.  Tolls and parking fees can also be deducted.

You can deduct expenses for registration and transportation to a medical conference relating to the medical condition of you, your spouse or celiac dependent.  (However, you cannot deduct the cost of meals and lodging while attending the meeting).

Documentation is Key

You will need to obtain the proper paperwork to document your health condition and that you require gluten-free food. You will need to:

1. Request a letter from your doctor stating that you have celiac disease and require gluten-free food for medical reasons.
2. Note the price of your gluten-free food purchases: retain, for example, your cash register receipts and cancelled checks or credit card statement
3. Note the price of a comparable gluten-containing item
4. Create a worksheet to show how you calculated the excess cost of your gluten-free products

Keep this paperwork in a safe place, but do not submit with your tax forms.  You will need to produce this documentation only if you are audited by the IRS.

Eligibility & How to Claim

As far as I can tell, the current regulations only apply to people diagnosed with celiac disease. What about non-celiac gluten sensitivity or wheat allergy? I am not aware that the regulations apply to these conditions—but if you are an expert on this topic, please feel free to leave a comment below.

Report your total medical expenses (medical care expenses plus deductions for gluten-free foods) on Schedule A of form 1040. (These deductions only apply if you use Schedule A to itemize your deductions).

You can only claim a deduction for medical expenses if they exceed 7.5% of your Adjusted Gross Income.

Specific information can be found in these formal documents:

IRS Topic 502 - Medical & Dental Expenses
IRS Publication 502
Revenue Rulings: 55-261; 76-80; 2002-19; 2000-24
Cohen 38 TC 387
Randolph 67 TC 481
Fleming TC MEMO 1980 583
Van Kalb TC MEMO 1978 366

Finally, if you can’t file these deductions for 2012, it may be worth planning now for your 2013 tax returns next year!

Disclaimer: Of course, this blog is not official tax advice: you’ll need to work with a tax professional to confirm that this material is applicable to your particular situation.