Is Massage Therapy a Tax Deductible Expense?
Learn when prescribed massage therapy qualifies as a legitimate medical expense and the specific IRS requirements for claiming it as a tax deduction.
Massage therapy can be a tax-deductible expense, but the Internal Revenue Service (IRS) only permits the deduction if the therapy is a medical necessity. For the cost to be deductible, the massage must be prescribed by a doctor to treat a diagnosed medical condition. If the primary purpose is for relaxation or stress relief without a doctor’s order, it is classified as a personal expense and is not deductible.
Qualifying Massage Therapy as a Medical Expense
For massage therapy costs to be eligible for a tax deduction, they must meet the IRS definition of a medical expense. This means the treatment must be intended to “diagnose, cure, mitigate, treat, or prevent a disease.” The most direct way to satisfy this requirement is to have the therapy prescribed by a physician to treat a specific, diagnosed health issue. The treatment plan must be directly related to alleviating the particular ailment.
For example, if a doctor diagnoses a patient with a condition like sciatica, carpal tunnel syndrome, or a specific back injury and prescribes massage therapy as part of the treatment protocol, the costs can qualify. Conversely, receiving a massage for general well-being does not meet the IRS standard. A person who gets regular massages to manage everyday stress or for general muscle soreness without a formal diagnosis and prescription cannot deduct the expense.
Required Documentation for the Deduction
To substantiate the claim that massage therapy is a medical expense, you must maintain detailed records. The primary documentation is a formal prescription or a Letter of Medical Necessity (LMN) from a licensed physician. This document serves as evidence that the treatment is a required component of a medical treatment plan.
The LMN must be specific, stating the medical condition being treated, such as chronic back pain or a specific injury. The letter must also recommend massage therapy as a necessary treatment for that condition and may specify the frequency and duration of the recommended treatments.
Beyond the LMN, you must keep a paper trail of all related payments. This includes collecting detailed receipts from the licensed massage therapist for every session. These receipts should show the date of service, the cost, and the name of the provider, and you should retain proof of payment like credit card statements or canceled checks.
Methods for Claiming the Tax Benefit
There are two primary ways to receive a tax benefit for qualifying massage therapy. The first method is to claim the costs as an itemized deduction on Schedule A of your Form 1040 tax return. This approach requires you to list all your qualifying medical expenses for the year.
A limitation to this method is the 7.5% Adjusted Gross Income (AGI) threshold. You can only deduct the portion of your total medical expenses that exceeds 7.5% of your AGI. For example, if your AGI is $60,000, the threshold is $4,500, and your total medical expenses are $5,500, you can only deduct $1,000.
A second method is to use pre-tax funds from a health-related savings account. If you have a Health Savings Account (HSA), Flexible Spending Account (FSA), or Health Reimbursement Arrangement (HRA), you can use these funds to pay for the massage therapy. This allows you to pay for the treatment with tax-free dollars, bypassing the 7.5% AGI hurdle.
To do this, you would submit the Letter of Medical Necessity and receipts to your account administrator for reimbursement. You cannot use HSA or FSA funds and also claim the expense as an itemized deduction, as this is not permitted by the IRS.