Can You Claim a Gluten-Free Food Tax Deduction?

Some people who must follow a gluten-free diet for medical reasons may wonder if they can claim the extra cost as a tax deduction. Specialty foods often come with higher prices, and any potential tax relief could help offset these expenses.

While it is possible to deduct certain gluten-free food costs, specific conditions must be met. Understanding what qualifies and how to properly document expenses is key to successfully claiming this deduction.

Medical Recognition

A gluten-free diet must be medically necessary to qualify for a tax deduction. The Internal Revenue Service (IRS) allows deductions for medical expenses related to disease diagnosis, treatment, or prevention. Individuals with celiac disease or another diagnosed condition requiring a gluten-free diet may be eligible to deduct the additional costs of gluten-free alternatives.

A formal diagnosis from a licensed medical professional is required. A physician must confirm that consuming gluten would cause health complications and that a strict gluten-free diet is necessary. Without this documentation, the IRS will not accept the deduction. Dietary preferences without a medical basis do not qualify.

Celiac disease is widely recognized by major health organizations, including the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH). Other conditions, such as non-celiac gluten sensitivity, may not always meet IRS criteria unless substantial medical evidence supports the necessity of a gluten-free diet.

Identifying Eligible Items

Only the additional cost of gluten-free substitutes qualifies for a tax deduction. The deductible amount is the price difference between a gluten-free item and its conventional counterpart. For example, if regular bread costs $3 and a gluten-free version costs $6, the deductible portion is $3. This applies to products like pasta, flour, and baking mixes that replace gluten-containing foods.

Naturally gluten-free foods, such as fruits, vegetables, plain rice, and fresh meats, do not qualify since they are not substitutes for gluten-containing products. Processed foods without a gluten-containing equivalent, such as certain specialty snacks, are also ineligible.

Restaurant meals, even if gluten-free, generally do not qualify unless prescribed by a doctor as part of medical treatment. However, if a person must purchase gluten-free flour to bake their own bread due to limited store availability, the price difference between gluten-free and regular flour can be deducted. Shipping costs for gluten-free products ordered online may also be deductible if the same items are not reasonably available locally.

Extra Cost Calculation

To determine the deductible portion of gluten-free food expenses, taxpayers must compare the cost of gluten-free products with standard grocery prices. Since prices vary by location and retailer, using receipts from the same store or a consistent pricing source ensures accuracy.

The IRS does not provide a standardized formula for these calculations, so individuals must maintain a consistent methodology. One approach is to track purchases over a set period to determine an average price difference. For example, if a household spends $250 on gluten-free groceries and comparable non-gluten-free items would have cost $180, the deductible portion is $70.

Additional expenses related to obtaining gluten-free foods may also be deductible. If a person must travel a significant distance to purchase required products, the IRS may allow mileage deductions under medical transportation expenses. As of 2024, the standard medical mileage rate is 22 cents per mile. A 50-mile round trip to a specialty store could add an $11 deduction. Similarly, if bulk purchasing is necessary to access gluten-free foods at a lower cost, any associated shipping fees may be included.

Documentation Requirements

Thorough record-keeping is necessary to substantiate gluten-free food deductions in case of an IRS audit. Every purchase should be backed by dated receipts listing specific gluten-free products. Since many retailers abbreviate product names on receipts, keeping a supplemental log that matches each entry to a corresponding gluten-free item strengthens documentation. Online purchases should be supported by order confirmations and shipping invoices.

A well-organized ledger tracking purchases, price differences, and total deductible amounts simplifies tax preparation. This should include a spreadsheet or written record categorizing each gluten-free product alongside the standard cost of its gluten-containing equivalent. Cross-referencing these figures with receipts ensures accuracy. If multiple household members follow a gluten-free diet, maintaining separate records for each individual may be beneficial, particularly if deductions are being claimed for dependents.

Filing Requirements

Once all eligible gluten-free food expenses have been documented and calculated, they must be reported correctly on a tax return. These costs fall under medical expenses, which are itemized deductions claimed on Schedule A (Form 1040). However, only the portion of total medical expenses that exceeds 7.5% of adjusted gross income (AGI) is deductible. For example, if a taxpayer’s AGI is $50,000, only medical expenses beyond $3,750 can be claimed.

Medical expense deductions are subject to IRS scrutiny, making proper record-keeping essential. If audited, the IRS may request proof of both the medical necessity of a gluten-free diet and the additional costs incurred. A doctor’s diagnosis letter and a detailed expense log help substantiate the claim. Tax software or a professional preparer can assist in ensuring all documentation is correctly filed and that the deduction is maximized within legal guidelines.