Plastic Surgery Deductions Through the IRS? Tax Deductible Cosmetic Surgery

Plastic surgery deductions through the IRS? Tax deductible cosmetic surgery

 

Taxes on cosmetic surgery have increased in some states, purely because of people's motivation for having the procedures done. New Jersey, for example, imposed a 'vanity tax' on cosmetic surgery procedures. Fortunately the tax was eventually repealed, not as much because of public criticism as that it only created 25 % of the forecasted revenue. On the other hand, many shrewd accountants and consumers are discovering that many elective surgical procedures are actually classified as tax deductible, rather than eligible for extra tax. This article discusses the current state of cosmetic surgery tax and tax deductions.

 

 

Filling out an itemized deduction Form 1040, Schedule A allows you to claim expenses that you paid for medical care for yourself, your spouse, or your dependents, according to the IRS.gov website and tax code. The site states that the expenses must be incurred in the treatment of disease, or can be incurred for "treatment affecting any structure or function of the body.” Certainly cosmetic surgery would fall under this definition, but patients are warned to beware; upon auditing, there could be trouble if procedures that are not designed to alleviate discomfort or correct an abnormality are claimed.

 

Recent decisions by the IRS regarding cosmetic surgery as deductions on your tax return have covered procedures like breast reduction and vision correction. Even if they are not an immediate threat to health, these procedures are certainly designed to correct an abnormality or in some cases can be considered to restore proper function. The IRS has made itself clear on the point of purely cosmetic surgery, though. Procedures like tooth whitening will not be tax deductible, as they are not designed to treat a physical or mental disease, or to promote the proper function of the body.

 

The idea that surgery can be performed to correct a mental disease is one that leaves the deductibility of certain procedures open to interpretation. If severe mental distress is being experienced by a physical aspect that can be corrected with plastic surgery, it may be argued that the procedure is tax deductible, even if the surgery otherwise would not be. If this is the case, it is advisable that patients have their surgeons record the fact that the referral for the procedure is being used for alleviation of mental distress. As with all government bureaucracies, providing documentation is half the battle.

 

For people in some professions, tax deductions on cosmetic surgery may be allowed if they are related to work performance. A landmark case of this nature involved an exotic dancer in Indiana using the stage name Chesty Love. Her claim was that her size 56FF breasts were used as a stage prop, to help her make more money, and that she gained no personal benefit from them.

 

The expenses will only be deductible for people in certain financial situations, also. They must exceed 7.5% of your gross income. People operating under some business structures will also have access to 100% deductibility, through Medical Reimbursement Plans.

 

While a cosmetic surgery tax may be on the minds of some state legislators as we face continued economic recession, on the federal level there is still some tax relief for those that have cosmetic surgery—assuming that you can justify its purpose according to the definition laid out by the IRS!