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* You may be able to deduct the cost of the Rothman Institute Wellness Program on your income taxes if your overall medical expenses exceed 7.5% of your reported income. Please read the following information from the American Obesity Association for further details. While reading, remember that the following is an interpretation of the IRS policy. For further confirmation, please consult your professional tax advisor on how this new policy effects your specific tax situation.

New Policy: In Revenue Ruling 2002-19, the IRS stated that, "Obesity is medically accepted to be a disease in its own right." The IRS ruled that, "Uncompensated amounts paid by individuals for participation in a weight-loss program as treatment for a specific disease or diseases (including obesity) diagnosed by a physician are expenses for medical care that are deductible under $213, subject to limitations of that section."

Previously, the language was so strict that all treatments for weight loss were excluded. The IRS then allowed the cost for treating diseases associated with obesity. Now the IRS has clearly stated new criteria allowing a wide array of costs for weight loss programs to be deducted by taxpayers to a) treat obesity, and b) treat conditions (such as hypertension) that can be improved with weight loss.

There are three categories of persons who may be eligible. First, taxpayers who itemize their deductions can add these costs to the costs of medical and dental expenses. Within this category, taxpayers can only deduct medical and dental expenses that exceed 7.5% of their adjusted gross income and that are not reimbursed.

Second, many employees have medical savings accounts (MSAs) through their employers. MSAs use the same definitions of medical expenses, as do individual taxpayers, therefore; employees can use their MSAs for weight loss programs if undertaken at a physician’s direction to treat an existing disease.

Third, many employers provide Flexible Savings Accounts (FSAs) that may provide this coverage. FSAs also use the same definitions of medical expenses, as do individual taxpayers.

The IRS did not use those terms. The eligible taxpayer must have a disease (including obesity), which is likely to benefit from weight loss treatment. Heart disease, hypertension, high cholesterol, and type 2 diabetes are other conditions that a physician may prescribe weight loss for treatment.

Yes. Obesity is a listed disease in the International Classification of Diseases (ICD-9-CM). The ICD-9-CM is published by the World Health Organization and is the definitive compilation of diseases; the United States Public Health Service uses it.

According to the IRS , "Obesity is medically accepted to be a disease in its own right. The National Heart, Lung, and Blood Institute, part of the National Institutes of Health, describes obesity as a "complex, multi-factorial chronic disease." Obesity is not defined in the Revenue Ruling. Medically, obesity is excessive body fat usually measured as 30 pounds or more over ideal body weight or a Body Mass Index of 30 or more.

The AOA interprets "weight-loss programs" to include physician-recommended treatments that are specific for weight loss and maintenance such as bariatric surgery, FDA approved weight loss drugs, physician and hospital-based programs, behavioral counseling, the services of physicians, dietitians and nutritionists, and exercise specialists.

Weight maintenance is a special circumstance and may or may not be allowed as a deduction. According to the IRS, once a condition is "cured," it is no longer deductible. However, the IRS states that "the deduction for medical care expenses will be confined strictly to expenses incurred primarily for the prevention or alleviation of a physical or mental defect or illness." Maintaining weight loss should qualify for the deduction if a physician recommends the continuation of treatment to manage weight for prevention or alleviation purposes.

Under separate sections of Publication 502, the following expenses are not deductible: health club dues, nutritional supplements, over the counter products, low fat foods, exercise equipment. The IRS has ruled that "a taxpayer, who participates in a weight reduction program to improve the taxpayer’s appearance, general health, and sense of well-being, and not to cure a specific ailment or disease, may not deduct the cost as a medical expense."

Documentation that your physician told you to lose weight to treat a specific disease such as obesity should be kept. Although the weight loss program itself does not have to be under physician direction, documentation should describe the treatment your physician recommends for weight loss. It is probably prudent to make a note for your files of when your doctor told you to lose weight. You must also keep records of the expense of the treatment(s). You need not submit proof of treatment and payment for treatment (e.g., prescriptions, receipts, invoices) with your taxes. However, such documentation should be kept in case of an audit.

Remember that we don’t speak for the IRS . We assume that the IRS would rely on audits of taxpayer returns. Audits for the express reason of the medical deduction are rare unless very large medical deductions are claimed in relationship to the income reported. But it could come up in routine audits. If asked, taxpayers are expected to be able to produce documentation of their deductions going back three years (sometimes up to six years). Therefore, it is wise to obtain your doctor’s instruction in writing now. The IRS would probably be less accepting of a letter from your doctor two years after the weight loss program is started. If the IRS otherwise believes the policy is being abused it can revert to the previous policy or alter the new policy.

No. Treatment does not have to be successful for the expense to be deductible.