<<Disclaimer: Verify this information before applying it to your situation.>>

Hello again,

For Canadian celiacs who aren't on the Canadian listserve, and American
celiacs unfamiliar with the Canadian rules re submitting a $ figure for the
gluten free food costs (new starting in the 2003 tax year) here is the
e-mail I sent following completing my own calculations:

"I've finished calculating my personal costs for gluten free foods for 2003.
as per the guidelines published on the Revenue Canada information bulletin.
The income tax guide states that we can claim the additional cost paid for
acquiring gluten-free food as compared to the cost of similar
non-gluten-free food, if a medical practitioner certifies in writing that we
require a gluten-free diet because of celiac disease. It also says that we
can claim medical expenses paid in any 12-month period ending in 2003 and
not claimed for 2002. Generally, we can claim all amounts paid, even if they
were not paid in Canada. The total expenses have to be more than the lesser
of:

3% of the amount on line 236 – Net income; or $1,755.

I put together a chart using Excel, as per the example given, and went
through all my receipts to pick out definite gluten free purchases.

I then listed the items and calculated the number of times I purchased each
item, including the prices paid and entered it all on the spreadsheet.

I went out to the grocery stores to price gluten containing similar
products.

I learned to be wise in choosing the alternate items.  It is to my (our)
advantage to find the most inexpensive price of a similar product in order
to get the greatest difference in costs. Note: this includes NOT getting the
gluten free item on sale, which diminishes the price difference.

I also learned that I could basically ignore comparing the prices of items
like yogourt and similar organic or vegetarian items because there either
isn't a price difference or it is so minimal that it isn't worth the time.

So the items that have substantial differences are baked goods, mixes (cake,
muffins etc.) some soups, gluten free noodles and pasta, some pre-made meal
entrees.  Admittedly, I compared Amy's shepherds pie with a Safeway turkey
pie, not really the same quality, but they were the same size and qualified
as being "similar".

My claim amount? $331 and some change.  This was for May to December.
Conclusion? If I hadn't had extraordinary dental procedures last year that I
had to pay up front (not covered by any plan) I would not have any claim for
gluten free food.  My claim amount per the guidelines for being celiac is
below the 3% figure, so it is nullified.

Unless I eat lots and lots of gluten free carbs this year, I won't have much
of a claim for next year either.  Right now I'm on a low carb diet to offset
the carbs I ate in November, December & January - you know, the winter
months when eating "bad" carbs seems to accelerate.  And when I do ease back
to carbs it will be in the form of veggies which of course don't have gluten
containing and gluten free versions.

I'd love to hear from others to find out how they are faring, working out
this deduction."

For Canadians & American celiacs who are unfamiliar with the IRS guidelines,
here's a selection of replies  I received when I asked people to let me know
how it works in America: (note: I left out names because so many replies
were similar)

"In the US, medical expenses are part of a group of tax deductions called,
“itemized deductions”.  Taxpayers are allowed to use their itemized
deductions, or a “standard deduction”, whichever is greater.

 For medical expenses, there is an additional threshold to meet.  Total
medical expenses (including the excess cost of GF food) must exceed 7.5% of
“Adjusted Gross Income” (Total Income minus certain allowable deductions
from gross income).

Finally, the itemized or standard deduction, along with an allowance we
receive for the number of dependents one has in their family, is used to
reduce Adjusted Gross Income to taxable income which is then subject to tax
based on a tax rate determined by filing status (married, single, etc.) and
amount of income."

"Did anyone suggest using a Medical Savings acct (pre-tax) and reimbursing
yourself for the difference in cost between regular and GF food?  I have
that through my employer and it is working very well.  A little bit of a
pain but I'll take any tax break that I can get."

"First of all, we have to have the kind of health insurance that will let us
put aside pre-tax dollars in an account for medical expenses not covered by
the plan.  Tax deductible from this money, is the difference in price
between a regular item and a gf item, for example: the difference in price
between  regular spaghetti noodles and gf spaghetti noodles.  Few health
care plans are set up in this way, in the first place.  That leaves most of
us with no deductible expenses."

"I hope someone from Italy replies to your post.  When we were there a
few years ago, we stayed at an Tuscany countryside farm that had little
self-cook cottages.  The woman was celiac, and took me into her large
walk-in pantry filled with store  bought cookies, pastas, flours, etc.
 The non-perishable kinds of things that celiacs can buy (but are made
with saturated fats, long shelf life) but should be limited in how much
we eat.  The woman said that she gets prescriptions for the food, and
the program is subsidized by the government, like their insurance is.
 She can go and pick out whatever she wants..."

"Just thought you might be interested - My understanding is that in England,
celiacs receive their breads, pastas, cookies and cakes, etc. free from the
National Health Scheme!!"

Conclusions:

"I personally spend very little more as I don't buy all the expensive items
advertised on this network.  I am from the south and eat a lot of beans,
brown rice, Hillshire farms smoked sausage, Pocono's Cream of Buckwheat
for breakfast, eggs, grits.  I get by with little or no bread. I am retired
and don't itemize and never have."

"We don't NEED GF bread, cereal, doughnuts, bagels, pasta etc. because there
are many everyday foods that are naturally GF (in fact, this is how I live.
I save a whole pile of money by buying very little of that expense stuff.)"

"If you don't own a huge home and have a huge mortgage (thus having high
interest and property tax deductions, most people cannot itemize at all).
Few can ever claim medical expenses even then. Mileage must be documented
and is allowed at a lower rate than business mileage.  Some lodging can be
taken, but doubt you can pull off a weekend trip to shop for your special
food. And yes, you only get back your tax rate (after those restrictions) --
many
people get those huge mortgages thinking the entire amount will come back,
rather than only a percentage of the interest charged."

One-liners:

"SO unless you have really low income and/or REALLY high medical costs, it's
not worth figuring out the gluten free deduction."

"It's basically the same here too."

"And I thought only us here in the good old U S of A were hoodwinked by our
government. "

"the USA is worse than Canada, believe me"

"It is a big pain and not worth it."

*Please provide references to back up claims of a product being GF or not GF*