Had VSG in Mexico...is the surgery tax deductible?

Well........is it? 

Yes it is!!!

I asked my sister who is a tax preparer if this surgery is tax deductible and she said yes.  BUT...at the same time, she said the surgery was "elective" according to IRS and they may come back and say No.   I would like to deduct it next year...my sister is hesitant because she doesn't want to have me audited.  Please check with your tax accountant about this.  Or perhaps on IRS.GOV there is information about medical expense deductions.

I looked into this and deducted the entire surgery amount from my taxes this year.  Yes, the IRS views it as elective surgery when you are self-pay, and IF they audit you over this deduction, you may have to prove through doctor records why you needed this surgery for obesity, but how many of us over the years haven't had our BMI, high blood pressure, diabetes, etc. documented by doctors.  AND, most of us have been on multiple diets like Weigh****chers, Jenny Craig, etc. also, so save that documentation of those experiences as well.  I believe most people going through this surgical procedure have years of medical related records they could use to document the need for this surgery.  Just having an obesity BMI documented by a doctor alone should be documentation enough.

Aloha PJ- It should be easy, huh,  if you were approved by your insurance company for an alternate surgery like RNY, but elected to have VSG. Seems as if then you'd already have been approved for WLS, right? XOLori

Hi Lori,

I work legal, so I asked a tax attorney friend of mine about this and he said, in his opinion, he doubts this deduction is going to raise a big red flag with the IRS unless you have something else on your return that gains their interest.  Unfortunately, tax returns are not prepared with much detail and this surgery deduction is just lumped together with everything else medical, with no real description as to what it is for, so we may get asked to explain what it is for, but he says that is not even real likely.  Let's hope he is right!  That deduction helped me a bunch this year!

P.J.

Mahalo PJ! XOLori

I will be claiming everything related to my surgery this year. Hotel, airline. I was told I could.

Weight Loss surgery has always been deductable as long as it is provided by a  licensed practitioner and in a licensed facility or office.  It does not matter where (which counry) the care is provided. 

By definition, it is "medically necessary" for obesity which is considered a disease.  The fact that it is "elective" is a non-factor.  "Elective" simply means you chose to have whatever surgery.  Even life saving operations are sometimes considered "elective"...such as removing a tumor.  All surgeries other than trauma emergencies are "elective".....surgery for back pain, hammer toe,glaucoma....all elective and all deductable.  I think what the poster's tax preparer sister was referring to was "cosmetic" surgery which is not deductable (except in the case of reconstructive surgery by which a surgery is meant to make one "normal" i.e. reonstructing facial features after a car accident, or clef lip repair.  The U.S. tax code reads as follows: 

Operations

 

You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. See Cosmetic Surgery under What Expenses Are Not Includible, later.

 

Lodging

 

You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to receive medical care. See Nursing Home , later.

You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. You can include the cost of such lodging while away from home if all of the following requirements are met.

1. The lodging is primarily for and essential to medical care.

2. The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital.

3. The lodging is not lavish or extravagant under the cir****tances.

4. There is no significant element of personal pleasure, recreation, or vacation in the travel away from home.

 

The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals are not included.

Do not include the cost of lodging while away from home for medical treatment if that treatment is not received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging is not primarily for or essential to the medical care received.

 

Transportation

 

You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care.


 

How Much of the Expenses Can You Deduct?

 

You can deduct only the amount of your medical and dental expenses that is more than 7.5% of your adjusted gross income (Form 1040, line 38).

In this publication, the term “7.5% limit" is used to refer to 7.5% of your adjusted gross income. The phrase “subject to the 7.5% limit" is also used. This phrase means that you must subtract 7.5% (.075) of your adjusted gross income from your medical expenses to figure your medical expense deduction.

Example.

Your adjusted gross income is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your adjusted gross income.

http://www.irs.gov/publications/p502/ar02.html#en_US_publink 100014894