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Weight Loss-StopSmoking-IRS Tax Credit

Are my hypnosis weight loss, stop smoking sessions tax deductible?

*Please note this should not be considered tax advice. You will want to confirm with your tax consultant for as you know, tax laws change.

I do not process insurance claims because each insurance company has different policies about hypnosis and the terms under which it is covered are constantly changing from year to year.

YOU CAN RECEIVE AN IRS TAX CREDIT FOR WEIGHT LOSS AND SMOKING CESSATION

Many insurance companies do cover insurance for issues such as anxiety, smoking cessation, and weight loss with a medical doctor’s referral. Many Health Insurance Savings Plans allow you to use pre-tax HSA dollars for Smoking Cessation and some other areas of use. Check with your human resource representative or plan administrator. Often, if you tell them why you are coming for hypnosis, you can get your sessions pre-approved for HSA Tax dollar use.

Tax laws passed in 2003 allowing a tax credit that reimburses 100% of the money you pay 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 IRS: https://www.irs.gov/pub/irs-pdf/p502.pdf

Stop-Smoking Programs

You can include in medical expenses amounts you pay for a program to stop smoking. However, you can’t include in medical expenses amounts you pay for drugs that don’t require a prescription, such as nicotine gum or patches, that are designed to help stop smoking.

Weight-Loss Program

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, or heart disease). This includes fees you pay for member- ship in a weight reduction group as well as fees for attendance at periodic meetings. You can’t 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.

You can’t include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. You can include the cost of special food in medical expenses only if:

  1. The food doesn’t satisfy normal nutritional needs,
    2. The food alleviates or treats an illness, and
    3. The need for the food is substantiated by a physician.

The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet.

You can’t include in medical expenses the cost of a weight-loss program if the purpose of the weight loss is the improvement of appearance, general health, or sense of well-being. You can’t include amounts you pay to lose weight unless the weight loss is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). If the weight-loss treatment isn’t for a specific disease diagnosed by a physician, you can’t include either the fees you pay for membership in a weight reduction group or fees for attendance at periodic meetings. Also, you can’t include membership dues in a gym, health club, or spa. You can’t include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs.

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

Car expenses.

You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. You can’t include depreciation, insurance, general repair, or maintenance expenses.

If you don’t want to use your actual expenses for 2016, you can use the standard medical mileage rate of 19 cents a mile.

You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate.

 

Disclaimer-Please Note:

While hypnosis has many beneficial effects, hypnosis is not a substitute for appropriate medical attention.  Statements and services offered are not intended to diagnose, treat, cure or prevent any disease or illness.  Hypnosis is designed to act as an adjunct to more traditional therapies or as part of a holistic approach to self-improvement and good health.  Hypnotists and hypnotherapists are not medical doctors nor are they licensed mental health practitioners and as such do not diagnose or treat any physical or mental disorders. Any individual with a medical or psychological problem should first consult a qualified health care provider for diagnosis and professional advice. Hypnosis should only be practiced by those who have been appropriately trained, who practice appropriately, and within the scope of their training.