taxes

Don't you dare deduct these expenses!

Taxes » Tax Deductions »

Don't deduct OTC medication, but …
10 of 11
Next
Don't deduct OTC medication, but … © iStock

Don't deduct OTC medication, but …

Headache and cold treatments from your neighborhood pharmacy shelves have never been tax-deductible. There was some confusion here because for a while, the IRS allowed owners of medical flexible spending accounts, or FSAs, to use money in those pretax accounts to pay for over-the-counter drugs.

That option ended when 2011 began. Now you must get a doctor's prescription for OTC medications before the purchase can be reimbursed with FSA funds.

But you still can deduct diagnostic tests, such as store-bought tests for pregnancy and diabetic blood sugar levels.

And the IRS says moms get a tax deduction on breast-feeding supplies, including pumps and bottles, because, like obstetric care, "they are for the purpose of affecting a structure or function of the body of the lactating woman."

Previous
10 of 11
Next

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

Connect with us