Over-the-counter meds with Rx

[Kea]

From what I'm reading, IRS allows costs for over-the-counter medicines as long as there is a prescription (They disallow "non-prescription medicine.")

If I have that part correct, does a "Letter of Medical Necessity" (client's phrase) count? If so, for how long is that letter valid? One year, like most Rx or something different?

Thanks

[kcjenkins]

Letters of Medical Necessity

A letter of medical necessity (LMN) or letter of justification (LOJ) is a detailed prescription that a therapist or physician writes to be submitted to the insurance provider. The letter should be client specific and not just a list of the medical benefits of standing.

So, yes, that will do it if it meets those requirements.

[Kea]

Great! Thanks so much.

Is there a one-year time frame like there is for other prescriptions?

[kcjenkins]

I would assume so, unless the letter stated a shorter time frame.

[Kea]

Thanks so much.

[jainen]

>>does a "Letter of Medical Necessity" (client's phrase) count?<<

No, at least not on Schedule A. A letter of Medical Neccesity only works for the much broader limits of a flexible spending account. For itemized deductions, Pub 502 says "A prescribed drug is one that requires a prescription by a doctor for its use by an individual." The single exception is insulin. That definition is not an interpretation or policy. It is taken directly from the tax code itself, Section 213(d)(3).

Revenue Ruling 2003-102 explains that the statutory exclusion for reimbursements of employee health expenses is broader than the itemized deduction for medical expenses (which does not apply to nonprescription drugs).

[Kea]

Thanks Jainen. I'll look at that pub and section tomorrow (er, later today).

[Kea]

New wrinkle--

Client did have FSA at work for 2012. However she had several thousand $ in dental work that took her beyond the FSA amount. Her non-prescription medications were a relatively small amount of her non-FSA medical expenses.

Can she now recatagorize some of her FSA expenses to Sch A medical so that she can count the vitimins (etc.) as FSA?

Thanks