A Perfect Diet? Trim Your Waist and Tax Bill

Here’s one more reason to follow your doctor’s advice to shed pounds in the new year: Your diet efforts could be tax-deductible.

Commercial diet programs such as Weight Watchers and Jenny Craig, along with behavioral counseling, prescription weight-loss medications and weight-loss surgery may be tax deductible--if you meet certain qualifications. First, your doctor must recommend dieting to treat a disease that improves with weight loss (such as heart disease, hypertension, high cholesterol or Type 2 diabetes). And your total unreimbursed medical expenses must amount to at least 7.5% of your adjusted gross income. If you fit the bill, then save those receipts.

If not, don’t give up. Employer-sponsored medical savings accounts can be used to pay for the doctor-ordered weight-loss programs, as can money set aside in so-called flexible savings accounts.

Unfortunately, the Internal Revenue Service says you may not deduct nutritional supplements, exercise equipment, health-club dues or the cost of low-fat foods.