Did you know that you are entitle to claim on your taxes the incremental cost of gluten-free (GF) products? They are considered an eligible medical expense.
We have many readers that suffer from celiac disease (gluten intolerance) and are looking to save money on gluten-free products. They are entitled to claim the incremental costs associated with the purchase of gluten-free (GF) products as a medical expense.
What is the “incremental cost”?
The incremental cost is the difference in the cost of gluten-free products compared to the cost of similar non-gluten-free products. It is calculated by subtracting the cost of a non-gluten-free product from the cost of a gluten-free product (see example below).
What items are eligible?
- Generally, the food items are limited to those produced and marketed specifically for gluten-free diets. Such items include, but are not limited to, gluten-free bread, bagels, muffins, and cereals.
- Intermediate items will also be allowed where the patient suffering from celiac disease uses the items to make gluten-free products for their exclusive use. These include, but are not limited to, rice flour and gluten-free spices.
What if there are several people consuming the gluten-free products?
If several people consume the products, only the costs related to the part of the product consumed by the person with celiac disease are to be used in calculating the medical expense tax credit.
What documents do I need to support a claim for the medical expense tax credit?
If you are filing a paper return, include the following supporting documentation. If you are filing electronically keep the following supporting documentation in case we ask to see them at a later date:
- a letter from a medical practitioner confirming the person suffers from celiac disease and requires gluten-free products as a result of that disease;
- a receipt to support the cost of each gluten-free product or intermediate product claimed; and
- a summary of each item purchased during the 12-month period for which the expenses are being claimed (see example below).
1. Item: bread
2. Number of items purchased: 52
3. Average cost of non-GF product: $3.49
4. Average cost of GF product: $6.99
5. Incremental cost (line 4 minus line 3): $6.99 – $3.49 = $3.50
6. Amount to claim (line 5 multiplied by line 2): $3.50 x 52 = $182.00
I think this is a great program by the government to help people a little bit with the heavy cost of gluten-free products. I hope this helps a few people!