Question:
Can anyone explain the new IRS exemption for Weight Loss Surgery

   — Mary H. (posted on March 21, 2004)

March 21, 2004
I'd ask a tax professional (which I'm definitely NOT), but my understanding is that it's not an exemption; it's just that the IRS now recognized WLS as a medical expense that may be deducted once one's total allowable medical expenses exceed 7.5 percent of one's adjusted gross income. In other words, WLS isn't deductible in the same way that one's mortgage payments or chartitable deductions are deductible; WLS will only be deductible if the cost exceeds 7.5 percent of your adjusted gross income (most of us aren't going to get a benefit from that unless we are self-payers, or have lots of other qualifying medical expenses in the same year).
   — Suzy C.

March 21, 2004
Another good thing about the IRS. When you lose over 100 pounds after WLS, the cost of plastic surgery becomes a deductible medical expense. The plastic or reconstructive surgery is directly related to weight loss. My insurance would not pay anything on reconstructive/plastic surgery, but my tax preparer said it was included as medical expense.She said the mileage to and from surgeon is also deductable. Keep track of all your co-pays for all MD or DDS office visits and medicines. Medical, dental and vision expenses are included.I'm getting all my plastics done in 2004.Good luck. Keep good records of your expenses.
   — Linda Dianne E.

March 21, 2004
Mary, I REALLY doubt what Linda is saying is true. In fact, I would bet serious money it is NOT. You can only deduct things that are medically necessary and even though we feel PS is medically. For example, if your TT is approved by your insurance and your copay is 50/50, you can deduct the other 50% if it exceeds 7.5% of your AGI....Before going and getting this done, PLEASE talk to a real accountant, not some p/t hack working at the H&R Block at the local strip mall.
   — heathercross

March 21, 2004
FYI....Linda IS correct. I got a letter from my surgeon specifically stating that my plastic surgery (it was NOT referred to as cosmetic surgery) was medically necessary and was not paid by my insurance company NOT because it wasn't medically necessary, but because it simply was not a covered benefit on my policy. I had argued up and down with BC/BS about the medical necessity of it and I finally got a letter from them stating that while they recognize the medical necessity, the procedures are simply not a covered benefit on my policy. They went on to explain that if EVERY procedure for EVERY possible disease/ailment/medically necessary thing was covered on a policy, then NO ONE would be able to afford insurance coverage. But like another poster said...check with your tax preparer....and get a letter from your surgeon stating his professional opinion so that you don't run in to trouble with the IRS. Good luck to you!
   — Lynette B.

March 21, 2004
I went round and round about this with the company that handles our medical expense reimbursement accounts as I thought I would have a $2000 deductible and co-pay to use the PS I did. Evnetually turned out he was in network. The company kept insisting that cosmetic surgery was not allowed by the IRS. I kept insisting that it wasn't cosmetic but reconstructive surgery. I finally sent my copy of my approval from BCBS and a copy of the exclusions section where it clearly says it does not cover cosmetic surgery and copies of the letters from my WL surgeon, Neurosurgeon, Orthopedic surgeon and PS which all talked about the medical necessity. However, that was related to the abdominoplasty. I am fairly confident that no one would write me a letter stating that the lateral thigh lift portion or the breast augmentation or brachioplasty or thighplasty are medically necessary and therefore I won't gamble it and deduct it. Unless I can get a clear written determination from the IRS, I won't go there. Not worth the audit and penalties. <p>So the moral of my story is that the TT or panni might be able to be sold as medically necessary as well as a breast reduction, but the rest are a really tough sell.
   — zoedogcbr

March 21, 2004
I just spoke to my CPA about this, according to him as long as the plastic surgery corrects a medical condition then it IS deductible. However, only what exceeds 7.5% of your AGI. He suggests getting letters from doctors stating that removal of excess skin would improve function, etc. pre-op, and then it should be fine. Even if your insurance denied you, you would still be able to claim it as a medical deduction on your taxes, for example infertility treatments aren't covered by most insurance companies but they are deductible. As for the WLS itself, same thing, as long as you have a doctor saying that it's necessary, deduct it!! (just again remember it's only deductible for what's over 7.5% of your AGI) Good luck!
   — Sungurl B.

March 21, 2004
I posted the article I found on IRS deductions for WLS, etc on the message board. I really don't know how to copy it and get it to all the members. Please help me on the best way to do get this article to the membership. Natalie, Ct.
   — natalcia