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 Post subject: Claiming diapers
PostPosted: Sun Jul 05, 2015 6:42 am 
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Joined: Sun Jan 25, 2015 9:13 am
Posts: 397
I was wondering if any one knows what's needed to claim my diapers on my Canadian Tax return, I have all the bills and have seen a doctor and urologist. Do I need a prescription or just The Bills.

I have been diagnosed with an OAB


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 Post subject: Re: Claiming diapers
PostPosted: Wed Jul 08, 2015 11:31 am 
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Joined: Fri Oct 01, 2010 3:50 am
Posts: 234
I can't help specifically with Canadian taxes. In the US, I was able to deduct diaper costs from medical expenses each year. It did help reduce my tax rate when I could deduct them.

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 Post subject: Re: Claiming diapers
PostPosted: Wed Jul 08, 2015 2:47 pm 
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Joined: Sun Oct 20, 2013 3:45 pm
Posts: 1959
Location: North Carolina - Raleigh area
Rob,

We do the same in the U.S. Our tax accountant has us document every single penny. It was really shocking to see how high everything added up - more than I expected.

Do note that we keep detailed records in case we are challenged - every receipt even down to the last jar of rash cream or baby powder - not just for the diapers.

In the U.S. it is advisable to have a doctor's prescription or a statement of medical need for the various items or categories of items.

--John


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 Post subject: Re: Claiming diapers
PostPosted: Wed Jul 08, 2015 6:44 pm 
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Joined: Sat May 03, 2014 8:08 pm
Posts: 480
Location: York, Maine
I got my doctor to write me a letter stating that I have a medical necessity to use diapers. But according to our tax accountant unless the expenses amount to 10% or more of your adjusted gross income then it is not worth writing off. For my condition to be worth writing off I would have to have spent $9-10,000. I spent a lot of money on diapers last year but did not spend that much. I don't think I spent nearly that on supplies for this condition. My health insurance pays for all the Foley catheter supplies so I do not pay for any of that.


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 Post subject: Re: Claiming diapers
PostPosted: Thu Jul 09, 2015 12:32 am 
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Joined: Sun Feb 23, 2014 11:33 pm
Posts: 512
PBJ, I think I mentioned on another thread, that 10% threshold is for all medical expenses. It would also include copay/coinsurance, deductibles, anything you pay for scripts, etc.


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 Post subject: Re: Claiming diapers
PostPosted: Sat Jul 18, 2015 7:20 pm 
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Joined: Sat May 15, 2010 6:11 pm
Posts: 61
Location: Long Island, NY
PB&J32 wrote:
But according to our tax accountant unless the expenses amount to 10% or more of your adjusted gross income then it is not worth writing off.

Let me chime in on the subject. It may not be necessary to spend huge amounts of money on incontinence supplies to be able to get a tax advantage. Most people can select a Flexible Spending Account (FSA) in conjunction with their insurance. You decide what your medical expenses might average for a year, say 1000 or 1500 dollars (more for a family) and they deduct that amount from your pay on a monthly or weekly basis, depending on how you're paid. Keep every receipt and expenditure and document it according to your particular plan. That amount can come off your taxable income which lowers your tax rate. Every bandaid, bottle of aspirin, or diaper. You may have to have a letter from your urologist saying you need to wear diapers - check with your plan.

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 Post subject: Re: Claiming diapers
PostPosted: Mon Jul 20, 2015 11:53 am 
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Joined: Fri Feb 15, 2013 4:30 pm
Posts: 381
Location: PA - US
fred1959 wrote:
Let me chime in on the subject. It may not be necessary to spend huge amounts of money on incontinence supplies to be able to get a tax advantage. Most people can select a Flexible Spending Account (FSA) in conjunction with their insurance. You decide what your medical expenses might average for a year, say 1000 or 1500 dollars (more for a family) and they deduct that amount from your pay on a monthly or weekly basis, depending on how you're paid. Keep every receipt and expenditure and document it according to your particular plan. That amount can come off your taxable income which lowers your tax rate. Every bandaid, bottle of aspirin, or diaper. You may have to have a letter from your urologist saying you need to wear diapers - check with your plan.


I use a Flexible Spending Account and have used a Medical Spending Account before. (The difference depends on your insurnce deductable) I can tell you that I use the FSA for all of my diaper purchases and have not had any problem getting them. Diapers and other incontinece products are listed as approved items for FSA's. There are items that are listed as non-approved items for FSA's and they mostly include Over the counter itesm such as bandaids, asprin or other OTC medication. I have found that once a medication goes from being Prescription only at the pharmacy to OTC, it is no longer able to be purchased using an FSA.

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 Post subject: Re: Claiming diapers
PostPosted: Tue Jul 21, 2015 9:10 pm 
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Joined: Sat Apr 30, 2011 3:59 pm
Posts: 92
Just a data point and alternate opinion for those in the U.S. Not in the most recent tax year, but for several years before that, I had considerable deductible medical expenses out of pocket, all legitimate and well over the 10% minimum. Incon/extra personal hygiene supplies were a small fraction of that total. I do my own taxes using popular tax software, and just added all the supplies to the "medical equipment and supplies" total, which the program automatically added to other types of medical expenses and transferred the total to the Schedule A form. At no point, does the actual form ask for the individual category totals, so I consider a statement of medical necessity overkill.

I have the order emails. I have credit card statements listing "XP Medical" "Northshore Care" or wherever I bought them from, which my particular issuing bank categorizes on its own at year end for this purpose "Medical/Drugstore" which I could have produced if asked. In the years in question, I had minimal tax liability on a not-minimal income because of these huge deductions. I wondered if I was ever going to get audited, but actually I am told by friends in the field that this is actually relatively rare and I was not. I received large refunds I was due within a week of e-filing, and the statute of limitations has expired on these particular tax years.

I have had unrelated inquiries by mail in the past due to errors not on my end, and I have never been questioned on any other section of the return. Plus, I don't think the IRS is chasing after AB/DLs who are fraudulently claiming medical necessity. A normal person would assume that if somebody bought incon supplies, they or a spouse or dependent needs them. And frankly, even if one were not a person with medical incon, I think the chances of someone trying to verify that statement are slim. They're not going to ask to look at whatever you're wearing underneath your clothes, or in your trash or laundry. They are medical supplies that the typical adult does not need. They were bought and paid for from a medical vendor. What more would they want?

I happen to have a medical condition that can cause incon, and it's included with another medical condition on a letter my MD wrote for another purpose, and I am quite public about both in many contexts, but I wouldn't think to include it or produce it in an audit or ask my MD to provide one if I didn't already have one just for the small chance of an IRS audit. It's none of the IRS' business what my medical history is. Medical supplies were legitimately bought and paid for. That's all they need to know. I cannot speak to the Canadian system's expectations.


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