Income Tax

tmarie · February 27, 2005

OK, WE just had our taxes done and I'm a bit nervous and confussed. I know you can deduct out of pocket medical expenses less 7 1/2 percent of your adjust gross income. Since I was self paid for the lapband we turned in all the paper work from my surgery. The tax man was asking all kinds of questions about why didn't a go thru my insurance? was it medially necessary? I will like I was on the defensive. I do have insurance but they want you to go thru a 6 month diet program ya da ya da ya da. I was tired of being FAT and needed to do something, I didn't want to wait around for any approvals. Now I'm wondering if I should have gone thru my insurance anyways or just didn't bothrer with the income tax thing. The tax man said that they might deny our claim. Is there anyone out there who's has experience with this? Please tell me your experience. thanks for listening

Alexandra · February 27, 2005

The tax man said who might deny your claim? You can indeed deduct banding as a medical expense, no question. The IRS is not going to come to you seeking your proof of medical necessity. Only insurance carriers care about that.

If you want to submit the expenses now to your carrier, they might indeed deny your claim. But one thing has nothing to do with the other. You can deduct the expense when it was incurred (i.e., on your 2004 taxes), and when and if you are reimbursed by insurance you would report that as income and pay taxes on it then.

tmarie · February 27, 2005

Thanks for the reply. The tax man thought maybe the IRS will not except our claim. I found out the insurance for sure is not going to pay.

I didn't go thru the insurance because of all the requirements, such as diets ect.

sorry but I've been there done that. So I went on my own and found a doc and self paid. AM I crazy? Should I have gone thru the insurance?

princess_n_thep · February 27, 2005

U need to find a new tax man tmarie. If he was a good tax guy he would know that the only thing that the form requires is an amount, surgeon name and contact # and that's it. You only need a receipt if they audit you. And the tax law CLEARLY states that obesity weight loss surgery IS included. he should have known that. Heck, I did. Get a new tax guy! Your surgery is definitely deductable.

Sounds to me like your tax guy was just being nosey because there is no way he needed all the info he was asking you! And he knew that~!

Alexandra · February 27, 2005

AM I crazy? Should I have gone thru the insurance?

That all depends on what kind of insurance you have and what your medical condition is. It seems to me that if someone qualifies medically for the surgery there's no reason not to petition your insurance carrier to pay for it. I did, and even though I was denied three times I eventually prevailed by going to a third-party review. Maybe if I could have afforded to self-pay I wouldn't have stuck it out so long.

Depending on your coverage you might be able to submit your expenses now (unless you went out of the country for surgery). Why not look into it?