Q. Can you deduct marijuana medically prescribed for an elderly person?
A. No. Although the use of marijuana has been approved for medical purposes in some states, it is still illegal on the federal level. Therefore, the cost doesn’t qualify for medical expense deductions on a federal income tax return, even if it’s legally purchased and prescribed by a physician. In any event, the deduction for medical expenses on 2012 returns is limited to the excess above 7.5% of adjusted gross income (AGI), generally increasing to 10% of AGI in 2013.
Tip: The threshold for the medical expense deductions remains at 7.5% of AGI through 2016 for taxpayers age 65 or older.
- Small Business Tax Deduction Strategies No matches