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Monday, February 21, 2011
Tax Deduction Guide for Gluten-Free Products
I found this article on the NFCA website and thought it would be handy while preparing your 2010 taxes for April.

Tax Deduction Guide for Gluten-Free Products

Individuals diagnosed with celiac disease may be able to receive tax deductions for expenses associated with gluten-free foods and products. However, there are a few catches to obtaining them.

Here are a few tips to help you through all the procedures and paperwork:
Step 1: Get A Doctor’s Note
Request an official, written celiac diagnosis from your doctor.

Submit this documentation with your other completed forms (see Step 4). Make sure to keep a copy for your records!

Step 2: Save Your Receipts
Keep receipts of all gluten-free purchases from grocery stores, bakeries and anywhere else you buy gluten-free items.

Step 3: Break Out the Calculator
List the prices of gluten-free foods compared to those of regular foods. The difference between those prices is tax-deductible. For example, if a pound of wheat flour costs $0.89 and a pound of rice flour costs $3.25, then you may deduct $2.36 for each pound of rice flour purchased.
Products like xanthan gum and sorghum flour are completely tax-deductible as they have no "regular" counterpart but are purchased to meet your dietary needs. Shipping costs for online purchases are also permissible deductions.

Step 4: File Your Claim
Fill out form 1040 schedule A for medical deductions.

Refer to:
IRS Publication 502
Revenue Rulings: 55-261, 76-80, 2002-19 and 67 TC 481
Cohen 38 TC 387
Flemming TC MEMO 1980 583
Van Kalb TC MEMO 1978 366
Feel free to cite these references in your tax paperwork. For specific circumstances, contact an accountant.

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