I recently responded to a post with some tax deduction information and left my email address. I have had quite a few responses to the post I made, so I decided to write a general letter and post it here for others to view. If anyone has any questions, concerns or wants examples of how my family records the CF expenses (food and supplements) please send me an email to division902@hotmail.com. They are word and excel files so I can't post them anywhere here.
For guidance on regulations, applicable tax laws and ideas of how to keep track of the expenses go to this website: <a target=new class=ftalternatingbarlinklarge href="http://www.cff.org/SiteSearch/dsp_SearchResults.cfm">http://www.cff.org/SiteSearch/dsp_SearchResults.cfm</a> (COPY AND PASTE IT TO YOUR BROWSER-I haven't figured out the LINK part yet) and choose item #4. You can also get there by going to www.cff.org, typing food deductions in the search engine on the site and then it takes you to the website I listed above. I you have trouble finding it, let me know.
I keep EVERY receipt of any item of food we ever get. I subtract the non food items (housecleaning products, TP, Shampoo...) and write the FOOD total on the top of the reciept. At the end of the month, I put every reciept on an excel spread sheet. I record the date, location (store name, restaurant name, whatever is listed on reciept), amount and method of payment (cash, check #, debit, charge). I do this for every single reciept and then total the expenses for the MONTH. I do montly just because it's more convenient for me. Then I take 25% off for myself because I don't have CF and eat about 25% of the food purchased. I then take off 50% for NON CF related food expenses for Mark (for a female or smaller male it might be 20% or 35% for non CF related) and whatever is left over is TAX DEDUCTIBLE. For us, it turns out to be about $350 a month. Basically it breaks down to, if he didn't have CF, we would be spending about $350 less on food a month. In a year we accumulate about $400 in food related expenses that are tax deductible.
We also purchase protein powders, protein bars, vitamins, weight gainer... from health food stores, as well as Ensure (or Boost) shakes over the counter. People with infants or young children might purchase items such as special formulas or nutritional additives, or even special over the counter or RX diaper rash treatment (Extra bowel movements related to CF, which is different than food, yes, but STILL tax deductible as a medical expense). I keep track of those expenses monthly as well. I just use another tab on the same excel file. Again I organize them by month just so I can see how our spending goes. The only difference between this sheet and the food sheet is that 100% of what we spend is tax deductible. It is figured that if he didn't have CF, we wouldn't purchase these items, and that, by law, makes them tax deductible. In a year, we accumulate about $2000-3000 in supplement expenses that are tax deductible.
We also keep track of medical miles, as there is a space when you do your taxes where it tells you how to calculate it. I also record that on an excel spread sheet. I record the date, doctor or clinic we saw and the TOTAL miles (you could do each way too). We are lucky to have a local doctor, but there are many people that have to travel out of town so any out of town travel expenses related to a doctors visit are tax deductible such as food, lodging and miles.
Again, if anyone has any questions, concerns or wants examples please send an email to division902@hotmail.com
Julie Raysbrook
For guidance on regulations, applicable tax laws and ideas of how to keep track of the expenses go to this website: <a target=new class=ftalternatingbarlinklarge href="http://www.cff.org/SiteSearch/dsp_SearchResults.cfm">http://www.cff.org/SiteSearch/dsp_SearchResults.cfm</a> (COPY AND PASTE IT TO YOUR BROWSER-I haven't figured out the LINK part yet) and choose item #4. You can also get there by going to www.cff.org, typing food deductions in the search engine on the site and then it takes you to the website I listed above. I you have trouble finding it, let me know.
I keep EVERY receipt of any item of food we ever get. I subtract the non food items (housecleaning products, TP, Shampoo...) and write the FOOD total on the top of the reciept. At the end of the month, I put every reciept on an excel spread sheet. I record the date, location (store name, restaurant name, whatever is listed on reciept), amount and method of payment (cash, check #, debit, charge). I do this for every single reciept and then total the expenses for the MONTH. I do montly just because it's more convenient for me. Then I take 25% off for myself because I don't have CF and eat about 25% of the food purchased. I then take off 50% for NON CF related food expenses for Mark (for a female or smaller male it might be 20% or 35% for non CF related) and whatever is left over is TAX DEDUCTIBLE. For us, it turns out to be about $350 a month. Basically it breaks down to, if he didn't have CF, we would be spending about $350 less on food a month. In a year we accumulate about $400 in food related expenses that are tax deductible.
We also purchase protein powders, protein bars, vitamins, weight gainer... from health food stores, as well as Ensure (or Boost) shakes over the counter. People with infants or young children might purchase items such as special formulas or nutritional additives, or even special over the counter or RX diaper rash treatment (Extra bowel movements related to CF, which is different than food, yes, but STILL tax deductible as a medical expense). I keep track of those expenses monthly as well. I just use another tab on the same excel file. Again I organize them by month just so I can see how our spending goes. The only difference between this sheet and the food sheet is that 100% of what we spend is tax deductible. It is figured that if he didn't have CF, we wouldn't purchase these items, and that, by law, makes them tax deductible. In a year, we accumulate about $2000-3000 in supplement expenses that are tax deductible.
We also keep track of medical miles, as there is a space when you do your taxes where it tells you how to calculate it. I also record that on an excel spread sheet. I record the date, doctor or clinic we saw and the TOTAL miles (you could do each way too). We are lucky to have a local doctor, but there are many people that have to travel out of town so any out of town travel expenses related to a doctors visit are tax deductible such as food, lodging and miles.
Again, if anyone has any questions, concerns or wants examples please send an email to division902@hotmail.com
Julie Raysbrook