Question:
Tax Benefits of Plastic/Reconstructive Surgery
The medical costs of "cosmetic" surgery are not an allowable deduction for federal income tax purposes. However, I can find no information on "reconstructive" surgery costs as a deduction, nor a definition of what the IRS constitutes as "reconstructive surgery". Any tax professionals out there that have an opinion? Any one out there who deducted the medical costs of their plastic surgery after RNY on their tax forms? — Cyndie K. (posted on January 17, 2004)
January 17, 2004
I have wondered the same thing, Cyndie. I don't know the answer. But, I'm
wondering, if the surgery is deemed "medically necessary" (read:
covered by your insurance policy), is it more likely to be tax deductible
than surgery that isn't "medically necessary" (read:
"cosmetic"), at least in the eyes of the insurance company? And,
would it be enough to have a letter in your file from a doctor deeming it
"medically necessary" (in his opinion), even if the insurance
company wouldn't cover it? 'Cause it wouldn't seem fair to have the IRS
allow deductions only for those lucky enough to have insurance policies
that cover reconstructive surgery (when other policies are stingier). Good
question ... good luck.
— Suzy C.
January 17, 2004
It is funny that you asked this question today, I just talked to a agent on
Friday with the IRS, and one of the questions that I asked her was if
re-constructive surgery was covered. She said yes, if it fell into one of
three areas. 1. If you have a deformity - like clep lip. 2. If you have to
have re-constructive surgery do to a accident, like a auto accident that
you needed to have your face done. and 3. If it is medically necessary do
to a deformity. I asked her directly about from WLS and the loss of so much
weight, and she said if it is a medical necessity, now I took that as a
yes. It has to be a medical necessity for your insurance to pay for it.
Now if you have a face lift done, that would probley not be included in
that area. So, my insurance will pay for a breast reduction/lift, but will
not pay for the arms, I can get the PS to document that the arms do need to
be done, and I pay for it myself, I will claim the arms. Hope this helps.
— cindy
January 17, 2004
Cyndie, I was DENIED this week for my Lower Body Lift. I was gonna try and
"write it off" as a tax deduction but, it must be medically
necessary. The only thing I worry about is the IRS has lots of connections
and they can request info from your Ins Company. My rejection letter says
"Cosmectic", so, I am a little hesitant. But, I have thought
about writing it off and then if they catch me, I will fight it later, but,
i would think the back taxes and penalties would be quite LARGE, I also
worry that a $13,600 Lower Body Lift might set off an alarm when the IRS
Employee is processing my return.
— heathercross
January 18, 2004
The IRS classifies morbid obesity as a disease, and it states that plastic
surgery is covered if it needed to correct a deformity caused by disease.
I fully intend to deduct my recent tummy tuck and breast lift, and I plan
to get a letter from my PS to back up my claim that these surgeries were
reconstructive in nature, intended to correct the deformities caused by my
previous morbid obesity.
— Tally
January 18, 2004
I argued this a few months ago with the company that handles my medical
expense reimbursement account. I wanted to put in money to cover the
deductible and co-pay related to my insurance covered reconstructive
surgery. They kept insisting on no I could not get the money out of the
account. Finally I pushed the issue higher and said that if it was
cosmetic surgery then why would my insurance cover it. I quoted right out
of my benefits booklet. I finally faxed them the 4 letters I had from my
WL surgeon, orthopedic surgeon, plastic surgeon and neurosurgeon along with
the exclusions section of my insurance book. We had built the case for
insurance paying for my full extended abdominoplasty based on my back
history. After their legal department reviewed everything they agree that
it did meet the criteria of being needed due to a disease, but not because
of being formerly morbidly obese. Because of my crappy discs. So don't
assume you won't be reviewed, especially if you normally do not have much
for medical deductions. It will stand out like a sore thumb and I doubt
any one of us will win when it comes to things like thighs, arms, breasts
etc. The things that insurance normally doesn't pay for, unless it's
causing some major medical issue. The excess skin itself is not a disease.
If it's not creating another medical problem I would be willing to be the
claim would be denied in a audit and then you have to pay penalties etc.
Just my take on it!
— zoedogcbr
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