Question:
Tax deduction for out-of-pocket expenses?

Has anybody used their out-of-pocket medical expenses as a tax deduction or credit towards a flex-spending plan at work?    — DrL (posted on November 6, 2004)

November 6, 2004
You can use your tax deduction for out of pocket on your WLS not the PS. My husband and I had $19,000 in out of pocket last year for both of our WLS surgeries. We got a good chunk of change back from the Feds for our out of pocket. My understanding is that it has to be medicallly necessary for the PS. Like my PS that I am planning is only cosmetic, I am having a lower body lift next year then he will do and upper body lift 3-6 months later. I could live without the PS but the loose skin looks ugly. I do not have any rashes or infections. I cannot have a TT because of having very thin skin across where my belly button used to be due to a prior scar/hernia reduction in '93 due to complications from pancreatitis. With the flex-spending plan, I just learned of that a while ago and am not really sure what it is, but I have read here and on Spot Light that you cannot use it for this type of surgeries (PS). Christine PS-my husband and I asked two tax experts the question on using the expenses as a tax deduction and they said absolutely not. I also went on the IRS web site and they say no also.
   — ChristineB

November 7, 2004
Thanks! I had a patient who had skin problems but was denied by insurance and did not want to go through the 6 months of lotions and powders so she went out-of-pocket. We submitted all these letters, photos, etc for her flex plan and are waiting...she seems to be in the caregory "medically necessary but not covered." May work for patients with exclusions too ?
   — DrL

November 7, 2004
Hey John, Yep - we sure did. I went to Spain for my surgery in July 2002. Our tax guy told us we could claim all of the surgery expenses (surgeons fees, hospital, labs, x-rays, rx's, etc.), all travel expenses (airfare, taxi, train, etc.), lodging ($50 for the patient and $50 for the patient's support person per night) - pretty much everything but food. BUT, if your hotel includes breakfast buffet or something like that - then the food part IS included. For my husband's surgery this summer we went back to Spain (why fight a good thing? Dr. Baltasar is the BEST!) and we did use his flex spending account for a portion of the expenses. It was easy, painless, and they were totally fine that it was for surgery out of country. Hope that helps some! Let me know if I can answer any more questions, okay? So - you thinking about surgery for yourself? I know quite a few doctors who have been to my surgeon for surgery... Blessings, dina
   — Dina McBride

November 7, 2004
Flexiable Spending is a great tool to use. You can have about 5,000 taken out of your pay during the course of the year. It is not taxed. You can use it to cover medical expenses that you pay out of your pocket. You don't have to have the entire 5,000 already saved before you use it, but you do have to have it spend before the end of the year or you will lose it. You can only enter this program at the beginning of your company enrollment. So, for example, you now you are going to have out of pocket medical expenses for 5,000. You can have your employer (if they have this program) take out each week or bi monthly depending how you get paid out of your check based on the amount you want. If you have a claim before you have the full amount that is ok. You can submit the claim. It is a great program. I use if for my meds, doctor visits, medical supplies. I'm going to have PS December 10th so I'm going to use it for the 500.00 deductable I will be charged. Sign up for it if you can
   — Linda R.

November 8, 2004
Check with your flex spending plan. Mine does NOT cover plastic surgery or vitamins.
   — Connie M.

November 8, 2004
I was able to put a portion of my plastic surgery through flexible spending. The parts that were considered cosmetic could not be reimbursed, but portions that were identified as medically-necessary were eligible, as were all of the pre-op labs and hospital costs because they couold be traced to the medically-necessary portion of the procedures. I do get reimbursed for my vitamins through my flexible spending account because I have a doctor's statement indicating that the supplements are not for general health purposes (which are excluded by the IRS), but in response to a medical condition (malaborption as a result of gastic bypass).
   — Vespa R.

November 8, 2004
My insurance didn't cover my modified brachioplasty or inner thigh lift. However, my flexible spending account covered both. All you need is a letter of medical necessity from the doctor and I submitted the denial from my insurance carrier and my FSA paid for it completely (I took out $5000).
   — Patty H.