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February 11, 2021
Question

Inpatient rehab

  • February 11, 2021
  • 1 reply
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I am an independent contractor. I went to rehab as a requirement to keep a medical license. Can I deduct cost as a business expense

    1 reply

    RayW7
    February 11, 2021

     

    Does drug and alcohol addiction qualify as a medical and/ or psychological disease according to the IRS? Absolutely. Even if the general public is split on the question, the medical establishment and the IRS are not.

     

    They agree that costs incurred in the treatment of drug addiction is absolutely a medical expense and as such qualifies as a deduction for those who itemize and whose expenses exceed 7.5 percent of their income.

     

    According to the IRS:

    Alcoholism

    You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. This includes meals and lodging provided by the center during treatment.

    You can also include in medical expenses amounts you pay for transportation to and from Alcoholics Anonymous meetings in your community if the attendance is pursuant to medical advice that membership in Alcoholics Anonymous is necessary for the treatment of a disease involving the excessive use of alcoholic liquors.

    Drug Addiction

    You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. This includes meals and lodging at the center during treatment.

    acls2xAuthor
    February 11, 2021

    I understand it may be deducted as a medical expense. However my business is dependent on me retaining my license. If I did not go to rehab my license would have been suspended and my business then would not be able to operate (I do contract exams) With this in mind, can it be justified to deduct it as a business expense on schedule c

    DaveF1006
    February 12, 2021

    No, this cannot be reported as a business expense as a hardship. 

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