Are Addiction Treatment Costs Tax Deductible?

Drug abuse and addiction affect millions of American families every year. Only a small portion of those millions actually seek treatment for an addiction. Those that do find themselves struggling with the cost of that treatment. Addiction rehabilitation centers are expensive, especially if you choose a higher end one that provides more services. Health insurance does cover a portion of that treatment cost, but it can still be a heavy burden to carry. There are scholarships and financing for those who know where to look and qualify. When February rolls around, is there a way to recoup some of those expenses? Tax time can be a point where addicts and their loved ones reclaim some of those costs. Addiction treatment can be tax deductible under a medical cost.

Tax Deductible Addiction Treatment

Under the current law, addiction treatment can be deducted under a medical expense. These deductions must be itemized under schedule A. Any medical expense can be covered when the cost exceeds 7.5 percent of the adjusted gross income for the year. The current tax code states that medical expenses are those including mitigation, diagnosis, cure, treatment or a prevention of a disease. It also states that any illegal treatments or operations are not tax deductible. Anything that is legal in the United States to treat an addiction can be tax deductible. At any point during treatment that you receive an x-ray, physical, ambulance ride, hospital or nursing services can be deducted. Psychological and/or medical treatment of any kind is covered under the law at this time. A significant portion of addiction treatment is psychological and therefore can be deducted at tax time.

According to the government and the IRS, drug and alcohol addiction is considered a disease. Society as a whole is split on this issue, but the government is not. Any medical or psychological disease that requires treatment is, therefore, a deductible expense. The difficulty will be in how you file these special deductions on your tax return. There are specialists and accountants that can provide guidance when filing your taxes. It is important to speak with one of these professionals to ensure you file your taxes correctly to receive the deduction and prevent any mistakes or future hassles with the IRS. Addiction is trouble enough; there is no reason to add an audit or investigation from the IRS or other government agency for a mistake on your taxes.

Cost: When Choosing a Rehab Facility

The health and wellbeing of a loved one are of the utmost importance when choosing the right drug and alcohol rehabilitation facility. It is also important that you and your family are financially secure. The chaos that addiction can cause can only be compounded if the family and friends of the addict have to endure further trauma: medical, financial or social. Therefore, it is essential to consider all the options available in treatment. As previously stated, addiction treatment can be costly, but there are options to make that burden easier to bare. Treatment scholarships are available to those who apply and qualify, as well as financing. Health insurance does cover a considerable portion of the expenses. Families should contact their healthcare provider and treatment centers to ensure that they are compatible. Addiction is a troubling issue for all those around it. Getting the right help can change the lives of all affected by it. Speak to a professional about the options available if you or a loved one is in need of addiction treatment. There are thousands of hotlines, websites, and treatment centers that are waiting to help.

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