Lose Weight, Lighten Tax Bill Under New U.S. Rule

Yahoo ^ | 4/3/02

[Tumbleweed_Connection]

Taking your doctor's advice to lose weight could also lighten your tax bill under an Internal Revenue Service (news - web sites) (IRS) ruling announced Tuesday.

The costs for participating in weight-loss programs, aside from special foods, may be tax deductible, the IRS said.

But make sure the programs are in response to a physician's diagnosis, not just to shape up or look better. "Such costs are nondeductible personal expenses," the IRS said.

The ruling is meant to recognize obesity's increasingly accepted status as a disease. To be eligible for a deduction, a taxpayer must have qualifying medical expenses of more than 7.5% of their adjusted gross income, the cost of the program must not be compensated by insurance, and the taxpayer must participate in the program as treatment for a disease diagnosed by a physician.

Special dietary foods are not deductible because they take the place of regular foods the taxpayer would buy anyway, the IRS said.

[lafroste]

Now they tell me, after my diet is more than 50% towards its goal...

[TheCPA]

Because of the requirement that total medical expenses exceed 7.5% of adjusted gross income and total itemized deductions exceed the standard deduction, this new ruling might not help that many taxpayers. However, taxpayers who work for employers with Section 125 Plans (Cafeteria Plans) will be able to shelter some of their salary from taxation by setting aside money in the plan for qualifying weight loss expenditures. Section 125 plans are great for medical expenses for taxpayers whose employers have one. They are an effective way around the 7.5% of adjusted gross income requirement. In addition, self-employed taxpayers or eligible small businesses that have an Archer Medical Savings Account will now be able to use the funds in such accounts for qualifying weight loss expenditures.

[Jonathon Spectre]

The ruling is meant to recognize obesity's increasingly accepted status as a disease.

A twinkie to anyone who can tell me WHY it's necessary, as many times as possible, to recognize "obesity's increasingly accepted status as a disease". There's a reason, and one quite literally everyone in America has laughed at. But let's see if we're laughing in a couple of years.

Let's see if we'll be allowed to.

[mamelukesabre]

Absolutely disgusting. We, as a nation, will now be funding all these crackpot weightloss schemes. And for what? To drive prices for these scams even higher? To provide more opportunities for these useless "experts".

If uncle sam were really serious about getting america fit, he would give a tax break to all of us that ARE FIT! That would empower the individual to seek out whatever method works for him/her. To He** with the weight loss counselors and nutritionists and fitness gurus. We all know what we have to do to lose weight and get fit. It could be a VERY simple test to determine fitness: run the 440 in under 2 minutes, touch your toes for a count of 10 seconds, hold your breath for 60 seconds, hang from a bar for 30 seconds(feet off the ground), and maybe have them go up an escalator the wrong way.

Do all of those, and you qualify for a tax break. Forget about medical examinations and measurements, those are subjective. A test like the above is absolute with a definite pass/fail outcome and a non-medically trained person could administer the test.

[grumpster-dumpster]

The ruling, could state the following )but probably doesn't):

Taxpayers should be advised that under new guidlines and rulings by the IRS:

(1) Any taxpayer who has been on a medically supervised diet for 180 consecutive days may deduct 1/2 of 10% of adjusted gross income according to Schedule WL of Form 11875-7.
(1)(a) Exceptions: The "foolowing" exceptions apply (in accordance with public form 867443.57 sub paragraph 1432.7.6.4.)
(1)(a) .1 A standard requirement is imposed requiring that total weight loss medical expenses exceed 7.5% of adjusted gross income (according to subsection 35.b.6.(a) of Public Law 87654694.9831 (Appendix C)
and
(1)(a) .1.1 The claiment total itemized deductions exceed the standard deduction that would normally be assessed under Public Guideline 870358293.1.6.5.(a) of the U.S. Printing Offices's free handout 124321742890142-A.1. "Guide to Fat Typesetters" available under the Freedom of information Act subsection 4.1.3.2.(z) of Schedule a6.4 to Appendix Y of enclosure 574 "What to do when some at Typesetter want's to lose weight."
(1)(a) .1.2 Purpose:
(1)(a) .1.2 (a)The purpose of this ruling is to aid taxpayers in losing weight under a supervised program of weight loss without the need to give them a taxbreak, but rather just let them think they're getting one. (See Oversight doc # 43-87548973 subsection 84.(f) 4.8.1(G)(6))
(1)(a) .1.3 (a) Other exceptions: Taxpayers who work in occupations defined in U.S.G. Title 981658.974 D.1.(h)(84).47 (Occupations other than typesetters) are not eligible to recieve tax credits.
(1)(a) .2.1 Self-employed taxpayers:
(1)(a) .2.1 (a)Self employed taxpayers are defined in the Guiness Book of World Records (U.S. Government edition) in Section 439 of Appenix K subsection 569217.56 or eligible small businesses as defined in U.S. Dept of Agriculture Document 490600869.7 (Other businesses not dealing with Agriculture)
(1)(a) .2.1. (b) Exceptions:
(1)(a) .2.1 (b)(1) No business mentioned in Section (1)(a).2.1 will be able to use any funds designated as weight loss expenditures unless they conform to USDOT 463986.160.759 (a) Rev. 2001-35.19
(1)(a) .2.1 (b)(2) Qualifying businesses:
(1)(a) .2.1 (b)(3) None, (Unless noted in US Department of Fish & Wildlife Interagency memo 2001-99587.67.(MM).089 "Guide to Salmon Fishing in Las Vegas Nevada")

We at the IRS hope these new guidlines help you clearly understand your rights as taxpayers. For more information, please refer to USDOT-IRS publication: 77SunsetStrip842983.Hawaii50.968431.12AngryMen-at12O'ClockHigh999475757(D) Annex TheMagnificentSeven-g.2. "Guide to Understanding Your Taxes."