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Subject:
From:
Yael Bat-Chava <[log in to unmask]>
Date:
Tue, 3 Feb 1998 11:43:58 +0000
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<<Disclaimer: Verify this information before applying it to your situation.>>

Thanks for all who responded to my inquiry about tax break for GF
products.

The responses were very consistent.  The celiac web site,
http://www.celiac.com, has complete information about this issue.

Briefly stated, such deductios are possible but...

1) The deduction is made on Schedule A - Itemized Deductions, so one has
to qualify for itemizing versus taking the standard deductions.

2) The deductions are included in the Medical Expenses category that has a
7.5% floor or hurdle that must be exceeded before one would get any actual
tax benefits.  At a $30,000 income level, that's $2,250 of expenses before
you see any tax benefit.  An example, if a loaf of GF bread costs $5 and a
wheat based loaf costs $1.50, then only $3.50 qualifies to be deducted.
(In terms of bread only, one would have to eat roughly 645 loaves of bread
seeing a tax benefit. (That's almost 2 loaves a day!)

You must keep very detailed records of the products you buy as
well as producys to which you compare prices.  Some responders
indicated that using these deductions may put you at a higher risk for
being audited by the IRS.

Most responders felt that the record-keeping was not worth the
benefit, EXCEPT in cases where people worked for employers who had
flexible spending accounts.  In these cases, a person gets reimbursed
for his/her expenses in pre-tax dollars without having to meet the
7.5% hurdle or risk being audited.

Two responses were from countries outside of the USA, one from
Canada, who said that deducting the difference in cost between GF and
regular food has not been a problem, and one from Swizerland, who was
still not sure about the outcome of his tax return.

Yael in NYC

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