Ask the expert: Gluten-free tax deduction?

The cost of gluten-free food can be deducted on takes, but the deduction is not as helpful as one might think. Credit: Newsday
Yes. But the deduction is less helpful than you think. Find out if you have access to an employee benefit called a medical flexible spending account. It can save you money by letting you buy your son's medically required food with pretax dollars.
Regarding your question, if you itemize deductions, the extra cost of gluten-free food is a medical deduction. If a loaf of bread containing gluten costs $2.89, for example, and gluten-free bread costs $6, the extra $3.11 is deductible. And if you must travel to a special store to buy gluten-free food, the cost of transportation to and from the store is deductible. But you can only take medical deductions to the extent that your total unreimbursed expenses exceed 7.5 percent of your income. If you earned $75,000 annually, for example, you could only deduct medical expenses in excess of $5,625.
A flexible spending account is a better deal. You tell your employer how much of each paycheck you want to set aside for uninsured medical expenses. These contributions reduce your taxable income; they aren't subject to federal, state or payroll taxes. As you incur uninsured medical expenses, you submit the receipts to your employer or insurance company, and you're reimbursed from your account. If you're in the 25-percent federal tax bracket, your total federal tax saving is about $33 for each $100 in expenses. But don't contribute more to the account than your anticipated expenses; by law you forfeit any money you don't spend in the calendar year.

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