You May Receive an IRS Tax Credit
for Weight Loss & Smoking Cessation Hypnosis
Note the following information is not to be considered tax advice. Please confirm with your tax consultant and the latest regulations.
My Portland stop smoking and Portland weight loss programs mention that you may be permitted by the IRS to have a tax credit. Tax laws passed in 2003 onwards allow an IRS tax credit that reimburses 100% of the money you pay for for smoking cessation programs. If you are advised by a physician to lose weight, you can also be reimbursed 100% for weight loss hypnosis.
This is a tax credit – not a tax deduction, so that means 100% credit on your taxes! It’s almost as if your smoking cessation and weight loss hypnosis programs were free!
The information below is derived from pages 12 and 15 of IRS Publication 502 year 2003.
You can include in medical expenses amounts you pay for a program to stop smoking. However, you cannot include in medical expenses amounts you pay for drugs that do not require a prescription, such as nicotine gum or patches that are designed to help stop smoking.
You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, diabetes or heart disease). This includes fees you pay for membership in a weight reduction group and attendance at periodic meetings. 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.
How to Report
To claim the credit, complete Form 8885, Health Coverage Tax Credit, and attach it to your Form 1040 or Form 1040NR. Report the credit on Form 1040, line 67, or Form 1040NR, line 62, and check box c. You cannot claim the credit on Form 1040A or Form 1040EZ.
You need to attach invoices and proof of payment for any amounts you include on line 2 of Form 8885 for which you did not receive an advance payment. Be sure to ask me for a receipt! If you file your return electronically, attach the invoices and proof of payment to your Form 8453. Proof of payment may include a pay stub if insurance is through a spouse’s employment, a bank check, or bank statement for premiums that are automatically deducted from your account.
If you claim this credit, you cannot take the same expenses that you use to figure your health coverage tax credit into account in determining your:
Medical and dental expenses on Schedule A (Form 1040)
Self-employed health insurance deduction
Archer Medical Savings Account (MSA) distributions.