Reconstructive Plastic Surgery and taxes

My accountant told me if your plastic surgery is from massive weight loss, it is deductable. I had my first set of procedures 2 years ago and deducted them receiving a $2,000 refund. I am planning on doing it again next year after my LBL 3 weeks ago.

Cosmetic Surgery

 

Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. This includes any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction.

You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.

Example.

 

An individual undergoes surgery that removes a breast as part of treatment for cancer. She pays a surgeon to reconstruct the breast. The surgery to reconstruct the breast corrects a deformity directly related to the disease. The cost of the surgery is includible in her medical expenses.

I think a pretty good case could be made for plastics to reconstruct a deformity directly related to the disease (obesity).  I plan of deducting my expenses. 

I did deduct my brachioplasty because I had documented rashes in my armpits and the PS said if I got audited he would be willing to provide a letter indicating that it was medically necessary (even if insurance did not think so) whihc would make it eligible for deduction.  I did NOT, however, deduct my TT  because I could not think of any way to justify it as medically necessary and was not willing to risk an audit.

Lora

I did mine both ways and it was only about a $100 difference. I didn't spend near as much as others and I didn't think it was worth the risk. I also didn't have documented rashes with any doctors either. I always think accountants and tax preparers can tell you what they think or know is deductible but in the end it's up to the IRS. It's our butt on the line, not theirs.

I didn't claim any of mine because it basically wasn't medically necessary. I had no rashes or anything like that documented.

I claimed mine and it made a HUGE difference on my return.  I figure that since insurance decided to cover part of it (I reported their reimbursement), and because these are reconstructive surgeries that restore our bodies to a normal appearance- not cosmetic, I feel fine doing it.

April

First off, let me say that I am a CPA working in a CPA firm in Georgia.  And so you know what my most favorite day of the year is, right???  The moment I leave work on April 15th!!!

To start with, IRS considers obesity to be a 'disease'.  So first of most of us have had some sort of gastric surgery done, whether it be RNY, Lapband, VSG, or the DS.  When you were doing that surgery did you utilize those med expenses on your tax return if your surgery was not covered by insurance.

Once you have lost your weight, you want to look 'normal' again.  We dont just have plastic surgery, we have reconstructive surgery.  Next, please remember that medical expenses are not deductible for the first 7.5% of your Adjusted Gross Income, and thanks to the new healthcare bill that has passed, that amount is going to be 10% in future years.  The amount that is deductible includes all your out of pocket expenses incurred and not covered by insurance.  Medical, dental, lab work, x-rays, physical therapy, vision, post-tax paid insurance, prescriptions, and medical supplies (gauze, tape, OTC medications) and medical mileage.  Mind you the medical mileage rate is not equal to the business rate, but at least you can get some deduction.  For 2009, it is $.24/mile, and remember when calculating mileage, it is round trip mileage to these various places, not one-way. 

That is a very important term to remember.  The chances of having an full audit are very slim...less than 5%.  A 'full' audit might not occur until some two years after the original tax return has been filed.  Hope that this information has helped to answer your question.

LOL.......do you take a Looooooooooong vacation starting on April 16th?  My accountant takes off for 3 weeks every year around the 20th..

Thanks for info.  Due to my unemployment and the HIGH out of pocket medical I far exceed the 7.5%  last year.  I didn't realize it is going up to 10% in the future...I have to learn more about the new tax bill.  I provide my accountant with a detailed spreadsheet ..he loves it.

Anyhow.....THANKS a bunch.

Remember that IRS does not technically 'reject' it, you just might be the unlucky one to get called in for an 'audit'.

And yes, you can 'thank' Obamacare and Pelosicare for the increased percentage.  Remember they know what is best for everyone....definitely NOT !!!

The healthcare bill should also be called the CPA full employment act for 2010 !!!  It guarantees us jobs for the future.

Interesting post.  I was told by my Flexible Spending Account that I could not use that money, according to the IRS tax code (xxxxx) for plastic surgery, and of course they called it "elective".  They stressed "deformities" I wonder what it would take to get them to use that money for the surgery?  A letter from my surgeon?  I wonder if a surgeon would put his neck out that far to write that letter saying its "reconstructive" (I know that's how they got the insurance company to pay for the panniculectomy).

But - if I got to Mexico to have it done - would that still hold up?