Eligible Expenses

-Medical & Dependent Care-

Sample Medical Expenses



Eligible Ineligible
- Ambulance Expenses - Illegal Operations
- Artificial Limbs/ Prosthetics -Insurance Premiums: Insurance plans provided by your employer and deducted from your paycheck are not eligible for reimbursement 
- Abortion: must be legal - Cosmetic Expenses: must be prescribed by a physician to treat an existing illness, and not for cosmetic purposes
- Co-Insurance and Deductibles: Expenses in excess of an insurance plan's usual, customary reasonable charges
- Diagnostic Services: for medical purposes
- Hospital Services (impatient care including amounts paid for lodging and meals)
- Laboratory Fees
- Medical Services: must be legal and prescribed by a physician
- Obstetrical/ Gynecological Expenses
- Operations/ Surgery
- Physical Exams
- Sterilization
- Vasectomy/Sterilization
- X-Ray fees



Eligible Ineligible
- Artificial Teeth -Electric or battery-powered toothbrushes (even if a dentist recommends it), Dental Floss, Toothpaste
- Co-Insurance and Deductibles: Expenses in excess of an insurance plan's usual, customary reasonable charges - Teeth Whitening/ Bleaching: not eligible even if prescribed by a physician to treat a congenital condition
- Dental Treatment: including fees for X-Rays, fillings, braces, extractions, dentures, etc.
- Fluoridation Device
- Occlusal Guards to prevent teeth grinding
- Orthodontia: including fees associated with maintenance of orthodontic work



Eligible Ineligible
- Contact Lenses and related materials and equipment (such as saline solution, cleaners) - Sun Glasses (non-prescription)
- Eye Examinations, Eyeglasses and related equipments and materials: must be prescribed by a physician for medical reasons
- Laser Eye Surgery (including Radial Keratotomy & Lasik)
- Optometrist/ Ophthalmologist Expenses
- Reading Glasses
- Sun Glasses (must be prescription and not for cosmetic purposes)



Eligible Ineligible
- Birth Control Pills  - Nutritional Supplements, Vitamins, Herbal Supplements, Natural Medicines: unless prescribed by a physician to treat an specific medical condition or unavailable without a prescription
- Flu Shots - Rogaine (if purchased over-the-counter for cosmetic purposes)
- Immunizations (e.g. tetanus, well-baby shots, etc.) - Drugs/ Medicines prescribed by Alternative Healers (must be M.D.)
- Prescription Drugs (as prescribed by a physician)
- Insulin
- Norplant Insertion or Removal
- Vaccines
- Viagra


Over-The-Counter Drugs   Now Require a Note of Medical Necessity

Eligible Ineligible
- Allergy medicine - Chap stick
- Antacid - Cosmetics
- Anti-diarrhea medicine & laxatives - deodorant
- Band-Aids, bandages & gauze pads - Face Cream, suntan, lotion, & moisteners
- Calamine lotion & bug bite medication - Mouthwash
- Carpal tunnel wrist support - NoDoz
- Cold & flu medicine - One-a-day vitamins
- Cold/hot packs for injuries - Sleeping pills
- Contact lens cleaning and wetting solution - Tissues
- Cough drops & Throat lozenges - Toiletries
- First aid cream & antibacterial ointment - Toothbrush
- Incontinence pads - Toothpaste
- Liquid adhesive for cuts - Vaseline
- Motion sickness pills - Weight scales
- Muscle or joint pain reliever
- Nasal strips or sprays
- Nicotine gum or patches for smoking cessation
- Ointment or cream for sunburn
- Pain reliever
- Reading glasses
- Sinus medication & nasal sinus sprays
- Suppositories & creams for hemorrhoids
- Thermometer
- Wart remover treatment


 Additional Examples of Over-The-Counter Expenses That Require a Medical Doctor's Note 

- Arthritis treatment - Orthopedic shoes and inserts 
- Chinese herbs, naturopathic, & dietary supplements - Sleeping aids
- Depression medication - Sunscreen
- Hormone therapy - Topical creams
- Lactose intolerant pills - Vitamins, herbs and minerals (to treat a medical condition)
- Nasal spray for snoring - Weight loss drugs


Eligible Medical Supplies 

- Blood Pressure Monitoring Devices
- Crutches
- Ear Plugs (as prescribed by a physician for a specific medical condition)
- Hearing Aids (including amounts paid for batteries and maintenance)
- Insulin
- Medical Monitoring and Testing Devices (e.g. blood pressure monitor, syringes, glucose kit, ovulation monitor, etc.)
- Oxygen (including amount paid for oxygen and equipment for breathing problems associated with a medical condition)
- Supplies to Treat a Medical Condition: e.g. bandages, gauze, batteries for hearing aids, etc.  Supply must be incurred to treat a specific medical condition, and not as a personal comfort item
- Wheelchair (including purchase and cost of operation and upkeep)



Eligible Ineligible
- Adoption (medical expenses incurred before adoption is finalized) - Breast Pumps
- Contraceptives (may be over the counter e.g. condoms, birth-control pills, and spermicidal foam.) - Diapers or Diaper Service
- Co-Insurance and Deductibles: Expenses associated with child birth in excess of an insurance plan's usual, customary reasonable charges - Maternity Clothes
- Fees for Long-Term Storage of Sperm or Embryo (for immediate conception)
- Fertility Treatments (including shots, treatment, surgery, GIFT, etc.)
- Infertility Treatments
- Ovulation Monitor
- Pregnancy Test (over-the-counter)



Eligible Ineligible
- Acupuncture (if to treat a medical condition) - Marriage Counseling
- Alcoholism (for inpatient treatment at a therapeutic center for alcohol addiction) - Massage Therapy (unless prescribed by a physician to treat a specific injury or trauma)
- Chiropractors
- Christian Science Practitioners (for medical care)
- Counseling, Psychiatric Care, Psychologist/Psychiatrist, Psychoanalysis  (for the treatment of a mental illness; Doctor's note is required)
- Drug Addiction (for inpatient treatment at a therapeutic center for drug addiction)
- Learning Disability (amounts paid to special school or specially-trained teacher, prescribed by a physician, for a child who has severe learning disabilities caused by mental or physical impairment)
- Naturopathic, Holistic, Alternative Treatment (for medical care for the purpose of affecting any structure or function of the body)
- Physical Therapy
- Smoking Cessation Programs


Cosmetic Expenses 

Eligible Ineligible
- Cosmetic Surgery (if medically necessary to correct a congenital abnormality, disfiguring disease, or corrective surgery resulting from personal injury from an accident of trauma) - Cosmetic Surgery (for the purpose of improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease)
- Cosmetics (such as face creams, deodorants, hand lotions, etc.)
- Ear Piercing
- Electrolysis or Hair Removal
- Face Lifts (unless medically necessary, see Eligible Cosmetic Surgery)
- Hair Removal
- Hair Transplant
- Teeth Whitening
- Varicose Veins
-Wigs (may be eligible if prescribed by a physician  for the mental health of a patient who has lost all of his or her hair due to disease or treatment)


Other Expenses 

Eligible Ineligible
- Automobile Modifications for Physically Handicapped Person - Exercise Equipment or Programs (unless prescribed by a physician to treat a specific medical condition)
- Guide Dog or Animal Aide (including the purchase, training, and care of animals used by vision-impaired or hearing-impaired person) - Fitness Programs
- Lodging Expenses: amounts paid for travel primarily for and essential to medical care (up to $50.00 per night) - Funeral Expenses
- Nursing Services (including nurses' board, wages, or other nursing services - does not include nursing service for a healthy baby) - Health Club Dues
- Travel Expenses: amounts paid for transportation primarily for, and essential to medical care - 16.5 cents for 2010 and then it will be 19 cents for 2011. - Household Help
- Weight Loss Programs / Drugs: must be prescribed by a physician to treat a specific disease for medical care (such as heart disease, obesity, diabetes, etc.) - Meals (associated with travel for medical purposes)
- Swimming Lessons
- Tanning Salons & Equipment
- Weight Loss Programs / Drugs (for improvement of general health)

Sample Dependent care Expenses


General Requirements 

Eligible Ineligible
- Dependent Children under the age of 13 - Dependents over the age of 13
- Dependent of the taxpayer who is physically or mentally incapable of caring for him/herself - Custodial parent(s) not maintaining gainful employment or full time student status
- Spouse of the taxpayer who is physically or mentally incapable of caring for him/herself
- Dependent Care must be for the sole purpose of allowing the custodial parent(s) to maintain gainful employment or full time student status


Dependent Care Expenses 

Eligible Ineligible
- After School Care or Extended Day Programs - Chauffer
- Assisted Living, Nursing Homes (only if such expenses are not attributable to medical services and the dependent regularly spends at least eight hours each day in the taxpayer's household) - Cook
- Baby-sitter inside or outside participant's household (unless the baby-sitter is a child of the employee under age 19, or otherwise claimed as a dependent by the employee) - Disabled Spouse or Tax Dependent living outside household
- Dependent Care Center Expenses - Educational Expenses - Kindergarten and above
- Dependent Care Expenses incurred in connection with Self-Employment (allows one or more custodial parent(s) to be gainfully employed) - Food Expenses
- Educational Expenses - Preschool & Nursery School - Gardener
- Expenses paid to Relative of Participant for Dependent care (unless the relative is a tax dependent or child under the age of 19) - Household Services (e.g. maid, housekeeper, etc.)
- FICA & FUTA Taxes of Day Care Provider - Overnight Camp Expenses
- Nanny Expenses
- Summer Day Camp (if the primary purpose is custodial and not educational)

This list is by no means exhaustive.  If you have further questions regarding a medical or dependent care expense, please contact us.