Can CBD oil be deducted as medical expense?
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Was it by prescription? OTC medications or supplements don't qualify.
You can include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc., if they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician.
Make sure you ask the client if they paid for it with an HSA or FSA plan before you take the deduction. Many clients do not realize they receive the tax benefit through the payroll deduction and can not take an additional medical deduction for the cost on the tax return.
If they have an HSA, the software will include the distribution amount from the 1099-SA on the Medical worksheet.
If I recall correctly, CBD oil isn't an eligible FSA expense. I only know that because I remember being shocked when I was reading through eligible expenses and Christian Science prayer was eligible and listed right above, CBD oil was not.
Thanks JeremyNJ. Good to know.
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