Eligible Expenses -Medical & Dependent Care-

 

Medical
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

 

Dental
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

 

Vision
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)

 

Medications/Prescriptions
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)

 

Pregnancy/Fertility
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)

 

Treatments/Therapy
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.