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Old 12-29-2003, 08:46 PM
Ed Zollars, CPA
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Default Re: Doctor prescribed supplements & tax deduction or 125 plan

JanZtaxNOSPAM wrote:

- quote -

> > My doctor has advised me to take calcium and vitamin D
> > supplements for osteopenia and prevention of osteoporosis.
> > Questions:
> > > 1. Can I be reimbursed for the cost of these supplements

> > under a cafeteria plan if I have something from the doctor
> > saying they are required for medical purposes?


> under new IRS rules, yes


Actually, the answer should probably be *maybe* <grin> ,
depending on the terms of the plan. First, the plan would
have to have a flexible spending account component and the
taxpayer would have had to have made use of that provision
of the Section 125 plan. Second, the terms of that FSA
would have to allow for such reimbursement. While the IRS
has ruled that the law allows such reimbursements under an
FSA arrangement, the FSA must still be operated in terms of
its own document and that document could limit
reimbursements to a subset of that allowed under the law.

I would also make one more correction--you refer to the
"new" rules. In reality, the IRS merely pointed in their
ruling out that the law *as written* allowed for such
reimbursements and always has. So, in fact, the rules
aren't so much "new" as they simply have been publicized by
the IRS now.

--
Ed Zollars, CPA
Phoenix, Arizona

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  #1  
Old 12-29-2003, 12:36 AM
JanZtaxNOSPAM
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Posts: n/a
Default Re: Doctor prescribed supplements & tax deduction or 125 plan

- quote -

> My doctor has advised me to take calcium and vitamin D
> supplements for osteopenia and prevention of osteoporosis.
> Questions:
> 1. Can I be reimbursed for the cost of these supplements
> under a cafeteria plan if I have something from the doctor
> saying they are required for medical purposes?


under new IRS rules, yes

- quote -

> 2. If not, can the cost be deducted as a medical expense on
> my income tax return?


No

Jan Zobel EA
Oakland, CA

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Old 12-28-2003, 11:37 PM
Helen P. OPlanick EA
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Default Re: Doctor prescribed supplements & tax deduction or 125 plan

- quote -

> My doctor has advised me to take calcium and vitamin D
> supplements for osteopenia and prevention of osteoporosis.
> Questions:
> 1. Can I be reimbursed for the cost of these supplements
> under a cafeteria plan if I have something from the doctor
> saying they are required for medical purposes?


Yes, under the new rules.

- quote -

> 2. If not, can the cost be deducted as a medical expense on
> my income tax return?


No, since these are still OTC items, they are not deductible
on your income taxes.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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  #-1  
Old 12-26-2003, 03:09 AM
soulofcicero
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Posts: n/a
Default Doctor prescribed supplements & tax deduction or 125 plan

My doctor has advised me to take calcium and vitamin D
supplements for osteopenia and prevention of osteoporosis.
Questions:

1. Can I be reimbursed for the cost of these supplements
under a cafeteria plan if I have something from the doctor
saying they are required for medical purposes?

2. If not, can the cost be deducted as a medical expense on
my income tax return?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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125, deduction, doctor, plan, prescribed, supplements, tax


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