can we deduct the cost of otc eye drops on our taxes as part of medical??

[jenny2008]

i am trying to itemize my 2010 medical expenses for tax time.. i was curious if we could also include the cost for the year for drops, wipes and other eye things for our condition? does anybody know??

thanks so much ...

[pete0085]

I am not totally sure, but thought I read you cannot deduct otc meds. I never kept all my receipts for that stuff, had no idea how much I would have spent, probably too much!

[jenny2008]

thanks for responding... i read somewhere online that youcould deduct saline solution so i thought maybe drops since the doctor does instruct you to use them..Rebecca do you know?

[gz9gjg]

Jenny,

In 2010 and prior years, eye drops, cleaning solutions, saline, etc could all be paid for from a Flex medical savings account. I have heard there have been changes for 2011 but don't have details. The best source for a list of OTC stuff that is eligible for reimbursement is your company's Flex plan administrator or the IRS.

Good luck . . .

[Rebecca Petris]

thanks for responding... i read somewhere online that youcould deduct saline solution so i thought maybe drops since the doctor does instruct you to use them..Rebecca do you know?

I checked the rules before doing my taxes the other day. No OTC drugs except insulin.

http://www.irs.gov/pub/irs-pdf/p502.pdf

Edit: Sorry, didn't read the post carefully. Saline for contacts is deductible.

[indrep]

Different states have different rules regarding "sales tax" and otc products. Also if the OTC product is PRESCRIBED by a doctor it can be deducted and flex dollars could be used to pay. By prescribed I mean a specific product and it is in the doctors chart that he prescribed the product as therapy.

Disclaimer:
The last time I read up on this was a year ago for 2010 and only for states east of the Mississippi.

[Rebecca Petris]

Re: deductibility: I thought I remembered people suggesting here in the past that if you got your doctor to 'prescribe' an OTC, you could deduct it so I looked at the language. Here's what it says (my emphases):

"You can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a doctor for its use by an individual. You can also include amounts you pay for insulin. Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not pre- scribed.l." (page 11)

and

"Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed.
Example. Your doctor recommends that you take aspi- rin. Because aspirin is a drug that does not require a physician’s prescription, you cannot include its cost in your medical expenses." (page 16)

[jenny2008]

thanks so much!! I read too that saline solution could be deducted so i thought for sure drops and wipes could be!! not fair..o well.. i will talk to my tax lady when i go in 3 weeks and see if she knows.. I couldn't do it for last year anyway since i didnt keep receipts but if it is deductible (at least where i live) i will let everyone know.
thanks so much

[poppy]

No idea what the rules are in the states, but in Australia you can get back a % of the cost of over the counter products and out of pocket medical expenses from your tax. This is ONLY once you have spent a certain amount in out of pocket expenses for the year. I think it's something like, $1500-$2000.

There are some restrictions on what over the counter stuff you can claim - it does need to be necessary for treatment of a medical condition and I think it has to be from a pharmacy. But I believe claiming artificial tears or lid wipes for dry eye should be fine. Claiming a bottle of get the red out drops because you partied to hard, probably would not be allowed.

I believe in Australia you can even get back a % of the cost of Lasik on your tax under these rules.

[indrep]

Rebecca, Your information is a reminder to never believe everything you read or hear without verifying for yourself. My information is good for sales tax.

The info for "deductibility" came from a recent seminar I attended. I am now desperately looking for notes to see if I wrote down speakers name.

[pecan121]

OTC purchases

I found this on the IRS website. It seems to say we can deduct the otc drugs if we have a prescription and keep good records. I don't know if this will work if you don't have a medical savings account. It would be worth checking out.

I copied just the relevant sections. You might want to read the entire text.



www.irs.gov/newsroom/article/0,,id=227308,00.
html

Affordable Care Act: Questions and Answers on Over-the-Counter Medicines and Drugs


Q. How are the rules changing for reimbursing the cost of over-the-counter medicines and drugs from health flexible spending arrangements (health FSAs) and health reimbursement arrangements (HRAs)?

A. Section 9003 of the Affordable Care Act established a new uniform standard for medical expenses. Effective Jan. 1, 2011, distributions from health FSAs and HRAs will be allowed to reimburse the cost of over-the-counter medicines or drugs only if they are purchased with a prescription. This new rule does not apply to reimbursements for the cost of insulin, which will continue to be permitted, even if purchased without a prescription.

Q. How are the rules changing for distributions from health savings accounts (HSAs) and Archer Medical Savings Accounts (Archer MSAs) that are used to reimburse the cost of over-the-counter medicines and drugs?

A. In accordance with Section 9003 of the Affordable Care Act, only prescribed medicines or drugs (including over-the-counter medicines and drugs that are prescribed) and insulin (even if purchased without a prescription) will be considered qualifying medical expenses and subject to preferred tax treatment.

Q. When will the changes become effective?

A. The changes are effective for purchases of over-the-counter medicines and drugs without a prescription after Dec. 31, 2010. The changes do not affect purchases of over-the-counter medicines and drugs in 2010, even if they are reimbursed after Dec. 31, 2010.

Q. How do I prove that I have purchased an over-the-counter medicine or drug with a prescription so that I can get reimbursed from my employer's health FSA or an HRA?

A. If your employer’s health FSA or HRA reimburses these expenses, you would provide the prescription (or a copy of the prescription or another item showing that a prescription for the item has been issued) and the customer receipt (or similar third-party documentation showing the date of the sale and the amount of the charge). For example, documentation could consist of a customer receipt issued by a pharmacy that reflects the date of sale and the amount of the charge, along with a copy of the prescription; or it could consist of a customer receipt that identifies the name of the purchaser (or the name of the person for whom the prescription applies), the date and amount of the purchase and an Rx number.

[Rebecca Petris]

That all starts with tax year 2011 not 2010' and it does not affect what is tax deductible, only FSA and HRA reimbursements.

I know these tax regs can seem quite confusing but if you read the medication sections of the publication on tax deductible medical expenses it seems very clear that OTC lubricant drops are NOT deductible because they are not a type of drug that requires a prescription. Here's the link http://www.irs.gov/pub/irs-pdf/p502.pdf

[jenny2008]

well i have done a little more reseach andi think Rebecca is correct.. It seems unfair that saline solution can be deducted but not our drops..which we desperately need!! Again, I will check in 3 weeks with my tax accountant--at least as far as Indiana is concerned..yikes..thanks for all the great replies.. i figured maybe others on this site would be curious as well as we spend so much $$ on our eyes..

[Guest]

It's the same thing here in Canada (if I'm wrong, I'd love nothing more to be corrected!!)... it really is unfair since we need these drops to function.. it's no different than someone getting rx pain medication and deducting it. If I ran the world...

[pete0085]

it really is unfair since we need these drops to function.. it's no different than someone getting rx pain medication and deducting it. If I ran the world...

I 100% agree with that! It's part of our regular routines and on my shopping list about twice a month. I am afraid to think about how much I spend on artifical drops in a year...