2006-041-RES-Health Reimbursement

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The cost of meals, lodging and ordinary education supplied by a special school is reimbursable only if the main reason for using the school is its resources for treating the mental or physical disability. The cost of sending a non- disabled "problem child" to a special school for benefits the child may get from the course of study and disciplinary methods is not reimbursable. Scientology "audits" - Amounts paid to the Church of Scientology for "audits" do not qualify as expenses for medical care. Sexual counseling - Expenses for counseling regCl!ding sexual inadequacy or incompatibility are reimbursable if the counseling is provided to a husband and/or wife by a psychiatrist. Smoking program -. The cost of a stop-smoking program is reimbursable. In June 1999 the IRS reversed its position on this issue based on scientific evidenced proving the addictive nature of tobacco. Stop-smoking drugs prescribed by a physician are also reimbursable. The cost of nonprescription drugs such as nicotine patches or gum, should be reimbursable when purchased to quit smoking. Spa or resort - Although a visit to a spa or resort may be prescribed by a physician for medical treatment, only the costs of the medical services provided are reimbursable, not the cost of transpor..ation. See Transportation and Trips. Special foods - The cost of special foods and/or beverages-even if prescribed- that substitute for other foods or beverages that a person would normally consume and that satisfy Dlltritional requirements (such as the consumption of bananas for potassium, for example) are not deductible. However, prescribed special foods or beverages are reimbursable if they are consumed primarily to alleviate or treat an illness or disease, that are substantiated by a physician and they are not part of normal nutritional fees. Special foods purchased as part of a weight loss program are not reimbursable expenses because, according to the IRS, reduced-calorie foods are substitutes for the food individuals would normally eat. Special foods and beverages are reimbursable only to the extent that their cost is greater than the cost of the commonly available version of the same product. Spouse medical expenses - These may be reimbursable if the spouse is of the opposite sex and does not file a separate tax return. Sterilization - The cost of a legal sterilization (a legally performed operation to make a person unable to have children) is reimbursable. Sunglasses - Prescription sunglasses are reimbursable. Non-prescription sunglasses may be reimbursable if they meet the Section 213 definition of medical care. Substance abuse - See Alcoholism and drug abuse. Supplemental Insurance Policies - Certain supplemental insurance policies, such as policies covering cancer or other specific diseases, hospital confmement and intensive care may be reimbursable under a Flexible Spending Account. Swimming lessons - See Dancing lessons. Taxes - Sales and service taxes imposed on qualified medical care or products are reimbursable. Teeth guards - These devices, prescribed to treat the grinding of teeth while sleeping, are reimbursable. Guards designed for sports are not reimbursable. Teeth whitening - These expenses are cosmetic and are not reimbursable. Telephone - The costs of purchasing and repairing special telephone equipment that lets a hearing-impaired person communicate over a regular telephone are reimbursable. Television - The cost of equipment that displays the audio part of TV programs as subtitles for a hearing-impaired person is reimbursable. This may include an adapter that attaches to a regular TV or the cost of a specially equipped TV in excess of the cost of the same model regular TV set. Tests - Diagnostic or screening tests - such as those that detect or evaluate the risk of heart disease, stroke, diabetes, osteoporosis, cancer, etc. - qualify as medical care under Section 213 if there is a direct relationship between the test and a medical diagnosis. Therapy - Amounts paid for therapy received as medical treatment are reimbursable. Payments made to an individual for special exercises administered to a mentally retarded child are also reimbursable. These so-called "patterning" exercises consist mainly of coordinated physical manipulation of the child's arms and legs to imitate crawling and other normal movements. Also see Fitness programs. Page 18