Most countries provide tax benefits to mini gastric bypass patients who qualify.
United States: Might Be Deductible
Mini gastric bypass surgery is tax deductible as long as the costs are higher than 10% of your adjusted gross income (click here for IRS rules).
In order to receive the deductions, you’ll need to complete Schedule A of the IRS Form 1040. You’ll also need to save your medical bills and payment statements as proof. Note that any reimbursed amounts cannot be included (such as the amount that insurance paid).
Depending on your employment status, money accrued in special savings accounts (or even your IRA) could also be a tax-advantaged payment option. Special tax-favored accounts to consider include:
- Health Savings Account (HSA) – HSAs can only be opened alongside a “qualified high deductible” health plan. Money contributed to an HSA, accumulated interest from the accounts where the money is invested, AND money taken out of the HSA to pay for qualified medical expenses are all TAX FREE. No other account receives more favorable tax treatment. You may even be able to transfer money already in your IRA into an HSA. See the IRS’s Site for more info.
- Archer Medical Savings Account (Archer MSA) – Archer MSAs are very similar to HSAs, except they are for self-employed individuals or small businesses.Click here for the details.
- Health Reimbursement Account (HRA) – HRAs can only be offered by your employer, and only your employer can contribute money to them. If your company offers one, make sure your plan allows the use of HRA funds to pay for “all qualified medical expenses” as financing bariatric surgery is not allowed with some plans. More information can be found by clicking here.
- Flexible Spending Account (FSA) – Both employers and employees can contribute to an FSA, also known by its IRS code, “Section 125”. FSA’s can be offered alongside any health plan, and withdrawals from this account can be made tax-free as long as they are used to pay for qualified medical expenses. Click here to get the summary from the IRS.
Canada: Is Deductible
Canada is generous compared to other countries when it comes to medical tax deductions. As long as you can substantiate your out of pocket mini gastric bypass expenses with a prescription, receipt, or other documentation, you should be able to write them off.
If your income is below a certain threshold, you may qualify for a tax credit called the refundable medical expense supplement.
Contact your provincial Ministry of Health for more details.
Australia: Might Be Deductible
If your out of pocket expenses for bariatric surgery (and all other net medical expenses) are over the Australian Taxation Office (ATO) threshold, you can claim an offset on your tax return.
According to the ATO:
“To claim the net medical expenses tax offset in your tax return, you will need to know the total medical expenses you incurred for yourself and your dependants. You then deduct any refunds from Medicare, your health fund or any other reimbursements that relate to those expenses received during the financial year.”
Click here for updated Medicare Benefit Tax Statement information from the Department of Human Services.