Is The Lap Band Surgery Tax Deductable as Medical?

[Chiquita 0]

I am planning to have lap band. I just started contacting the office where I will be doing this.

I wonder for those who self pay. Or anyone at all that would know.

When doing taxes will this be considered a medical expense that can be deducted?

I will have to pay 10,000 for the surgery plus what not for pre test and any other pre and post and fill ups, etc.

Anyone have ever done this and had an ok on having it be a medical deduction?

and

Anyone tried then got trouble with them saying it is not deductible?

At this point I feel is this of my life..

My BMI is at a Shocking 73.2 and my heart feels tired. This last year has been very hard on my health. I started with blood preasure issues one year ago, before that I was at a low blood preasure end been my normal. I also have sleep apnia, not that I have gotten a dianosis, but my husband and I have noticed it. I am at hight risk of many things. And due to both Granmothers having diabetis and dying from complications of it, well I am doomed to have it, and I want to live life for once.

I am 39, Have two kids with autism 7&8 and I desperately need the energy.

I am saving to have this done, and I keep thinking ok early next year, because I do not want to loose SSI for my kids disability until next year, as I found a good job online working in a virtual reality community, been saving the money, which is play money until I cash it out, but it equals 6000US, and at the pase I am making it, in another month I will have the 10000 needed for the surgery. If this is deductable, I can get away on pulling it out before the end of the year and scheduling the surgery. After that I don't care if I loose the SSI, but for the rest of the year, I need to save to save my life.

Now I am just going in circles, not sure if this makes sense.

Any help and suggestions?

[Longhorn 1]

My understanding is that the portion that you pay that exceeds 7.5% of your adjusted gross income is deductible. There are some things, such as special foods, etc., that are not deductible but the surgery, medications, doctor's visits, transportation, etc. related to the surgery are deductible.

You're paying cash but I financed mine. What I'm wondering is if I can deduct the entire expenses incurred this year or only the portion that I pay toward the principal.

[VegasGrace 1]

Yes, if you itemize...claim it!

If you don't... just look at your schedules... and the advice you received so far is good.

[Wheetsin 714]

Yes - as Jack said. OoP expenses beyond 7.5% of your AGI can be deducted. Since that's Greek to most people, read on if you need more info.

AGI - Adjusted Gross Income. AGI is your gross income from all sources, minus valid deductions such as alimony, moving expenses, IRA contributions, etc.

Let's say your AGI is $100,000.

Let's also say your valid band-related costs are $15,000.

7.5% of your AGI is $7,500.

So: $15,000 - $7,500 = $7,500 (the maximum of your itemized deduction).

In other words...

Medical costs - 7.5% of AGI = maximum deduction

As for medical loans, I'm not entirely sure but I would think that only the expenses you actually paid in any given tax year are eligible for deduction. Again - just a guess. In other words, if you took out a loan but are only paying $1000/yr in payments, then I would think at best that's $1000/yr you can deduct. I know that when considering medical expenses, it's the year in which the expenses are paid, regardless of the year in which services are rendered.

[restmgr985 0]

I spoke to my accountant , some portions are deductable , i am going to try to deduct whatever possible. I paid 7500 for my band total, plus a plane flight. I was banded on oct 10th by Dr Zapada in Mexico. i went there because i was self pay and didnt want to pay the prices they wanted locally.

[4jin 0]

I am employed in the accounting field. I love TAX TALK!!

Boring or yuck!! I get one of those reactions everytime...but what can I say I am a number's geek.

You have been given excellent information.

You must itemize to get the deduction

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).

IRS has guidelines for a structure of determine what medical expenses are allowed.

I too suggest it most always works best when taken in the year paid but is always subject to individual tax situations based on your AGI on your tax return before taking your exemptions. Only your tax professional which in this situation I would definitely recommend a CPA who has background expertise in medical/self employed small companies to handle your tax preparation.

I highly recommend to consult with your accountant/tax professional once you have your costs itemized by your surgeon, so he/she can guide you in the right direction based on your current situation. Don't forget all other family medical expenses for the year can be included.

The best advice you can be given as others stated just ask your accountant or consult one for free!

Many people make the error of going to any person/business or even preparing your own-to get their taxes done and this in many instances is costing people to lose potential deductions of an average of $1,000 loss of refund over a couple of years of tax returns.

Example: You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities. Such as personal trainers/nutrionist/dietician fees.

Here is a link to the IRS that has a bit more information:

Publication 502 (2006), Medical and Dental Expenses

[steph_co 9]

Excellent thread - thank you SO much for asking this question! I did not know about this before this past Monday - I happened to read in the book given to me by my surgeon's office that it may be tax deductible! I had no idea! This is some excellent information! DH and I are self-employed and file jointly. Would that be the AGI of what we make together, then? If that's the case, we'll have to have our accountant compare filing jointly to separately! Oh, this is cool - it makes me feel a whole lot better about all that money.

[TheGh0st 9]

Don't forget, once you hit that 7.5% threshold you can deduct ALL your family's medical expenses for the year. Not just the band related ones.

On the financing question. I too say ask a professional accountant, but I would think it would also depend on how you had financed it. If you did NOT finance it through the doctors office but financed it by taking out a second mortgage, on a personal credit card or some other method then I would think it would get deducted the first year, not as you pay it off. After all the medical bill was paid off fully the first year as far as the doc is concerned. The fact you took a loan out from a 3rd party should not affect that.

AGAIN I AM NO PROFESSIONAL ACCOUNTANT NOR DO I PLAY ONE ON TV OR ONLINE.

[Chiquita 0]

Oh this is so great info thanks all.

I am wondering if I should put my surgery off until January ot have it on December.

The doctor I will go charges 10000 and the money I am saving for it is in a virtual reality game, some might know about called Second Life.

In the last few months things have gone well, and I started saving for this surgery just 2 months ago and have over 6000 or it, by my calculations, in one more month I will have the 10000.

My struggle was if I do the surgery after the 1st of the year, then I can deal with the tax portion then, since I don't get taxed until I convert my play money into US currency, I know is complicated, but is a game, and is no income until I do that.

Until now, we been broke all our lifes, and we receive disability for our two kids with autism which has helped a bunch since I can't go to work because of needing to be available for their care and related things.

Once I pull this money, my income a month will go up where I loose SSI for both of them which is fine, but I don't want to do that before I have the money or it will slow things down.

It is complicated I know:faint:In a way I want to just do it. But then it means to have it right before Christmas and not sure if I am emotionally ready to do that, especially since we do a Christmas party at my home for all my husbands family. Yes that means lots of cooking.

I keep it simple with Soups, bread and something sweet, but still be hard if I cook it all and can't eat it

Soo enough of me going in circles. This really helps me, and yes encourages me as well, knowing that at least I get a break from all this money I am going to spend. But I feel is so very well worth it

[TheGh0st 9]

hmmmmm.....

Are you also saying you can't afford to pay for the surgery until after you pull out the money from this virtual game? But by pulling the money out you will ruin your SSI status?

If my assumption that you do is yes. The flip to that is that you only qualify for a deduction for the portion over the 7.5% level and paying for it in a year with a smaller income would put that threshold lower giving you a larger deduction. This makes me wonder if you could schedule the surgery for sometime mid to end of December pay for it with a credit card in December. Then cash out the Virtual Money January 1 and immediately paying the credit card off so it doesn't have any fees. This might allow you the best of both worlds. A larger refund for this year but not being disqualified from SSI until next year.

Talking to an accountant is always the BEST advice. But sometimes it doesn't hurt to get ideas from places like here first then run it by them.

[TheGh0st 9]

PS - another catch - have you and your family spent more on medical this year than you expect to next year. (Lapband aside that is)

If you decide to have it this year you will want to take every and anyone you can in for check-ups, dental appointments, whatever you can think of. And refill all possible prescriptions before the end of the year as well. As the money you spend on them also counts.

For tax records - I was able to call the various pharmacies I frequented and they were able to print an annual report for me to give my accountant. Same with the co-pays and other out-of pockets for the doctor's offices.

[Chiquita 0]

delete,, double post sorry

[Chiquita 0]

Yes basically, Once I pull my money out of this game, I will have an income of around 4000 a month, going from 0 to 4000 plust what my husband makes, well that will for sure take away the SSI as we are border line. Right now we get the max,, after I start making income they go on a sliding scale, but since I will make twice of what my husband brings home a month, I say yes, it will go bye bye. And that is ok for me, but I don't want it to go away prematurely, or it will back fire on me, I need the SSI on December for getting us through the month, and december is the most expensive month of the year for us.

I will limit to a couple presents to my kids. My present for me is the surgery and my husband gets that too :bounce: but in return he gets a happier me if that makes sense.

Unfortunally, I don't have the credit to put it in a Credit card or I would go for it. And not sure if the doctor would be up to holding a check until after the 1st lol.

I have hear many say, put your money on paypal, that way you don't have to pay taxes on it, well I think that is desonest, I think if you get the money on paypal is like having it in the bank, and the IRS would see it that way, I just do not wish to cause trouble with taxes and end up having us audited, which it can't be fun at all having someone going through your records and demanding to see paper work, I can verely keep my self after my kids, don't need the addes stress.

Other then waiting for January, I can't see any other way?? but if any of you have any fancy ideas lol, I would really like to hear them out

[kmmhmomof4 0]

I also had to self pay. In my case, My grandmother died recently and my mom and I were left with her checking account on which both of us were listed as well as my grandmother. I am wondering how this is going to go tax wise for me. I removed the money needed for surgery from her account and put it into my personal account and wrote checks from my account. Anyone know if I am going to need to claim the money as income or is it considered mine as I was on the account?? Any advise on this would be appreciated.

[TheGh0st 9]

I still like the idea of trying to find some way of paying for the surgery in December on some type of credit then cashing out your VR money in January. It would have to come from your own credit too, it couldn't come from money borrowed from friends or family or I don't think it would count. Maybe you could get several low limit / high rate cards that would add up to the surgery cost. As long as you paid them off immediately there wouldn't be any fees. Or if you talked to your bank maybe they could set you up with an overdraft protection on your check account. The downside to the overdraft would be they do charge a fee when the check hits but its still should be smaller than the tax benifit you would gain by pushing this through in December. I also think that if you write a check in December but it doesn't clear until January it still counts as December's business so if you could convince the doctor's office to hold the check until Jan 1. that would work as well. I know its a bit of a long shot but you might be surprised, the last two places I worked at regularily held off on depositing funds near the end of the year so it would look like they had made less money. If someone had asked them to hold a check at year end they would have been glad to (heck, they probably already were planning on it).