One common tax myth is the belief that you can deduct the cost of cosmetic surgery. This misconception can lead to incorrect deductions and potential issues with the IRS. Here's what you need to know to stay compliant and avoid these pitfalls.

Origin of the Myth

• Health-Related Expenses: Many people assume that all health-related expenses, including cosmetic procedures, are deductible.

• Lack of Clarity: There's often confusion about which medical expenses qualify for tax deductions.

Reality of Deducting Cosmetic Surgery Costs

• Personal Expenses: The IRS generally considers the cost of elective cosmetic surgery to be a personal expense, which is not deductible.

• Medically Necessary Procedures: If cosmetic surgery is necessary to improve a deformity arising from a congenital abnormality, an injury, or a disfiguring disease, it may be deductible.

IRS Guidelines on Cosmetic Surgery Deductions

• Non-Deductible Elective Procedures: Procedures done to improve appearance that are not medically necessary, such as facelifts, hair transplants, and liposuction, are not deductible.

• Potentially Deductible Procedures:

• Reconstructive Surgery: Surgeries to correct or improve deformities due to birth defects, accidents, or medical conditions.

• Medical Necessity: Procedures that are necessary to improve function or alleviate health problems may be deductible.

Why the Myth Persists

• General Misconceptions: Many taxpayers believe that all medical and health-related expenses are deductible.

• Anecdotal Advice: Misleading information and anecdotal advice from non-professional sources perpetuate the myth.

Avoiding the Pitfall

• Know What’s Deductible: Clearly understand the rules for deducting medical expenses, particularly cosmetic surgery.

• Non-Deductible: Elective cosmetic procedures done solely to enhance appearance.

• Deductible: Reconstructive surgeries that are medically necessary to correct deformities or treat health conditions.

What You Can Deduct

• Medically Necessary Procedures: Document any surgery that meets the IRS criteria for medical necessity.

• Related Medical Expenses: If the cosmetic surgery is deemed medically necessary, related expenses such as hospital stays, prescriptions, and follow-up treatments may also be deductible.

Consulting a Tax Professional

• Seek Professional Advice: Given the complexities of tax laws, consulting a tax professional can ensure that you are correctly identifying and claiming eligible deductions.

• Accurate Records: A professional can help you maintain proper documentation and calculate the correct deductions for medically necessary cosmetic surgery expenses.