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jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

The assistance I'm providing is to help cover Rx costs needed in care for the individual's diabetes.

1 Best answer

Accepted Solutions
Opus 17
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Medical expenses are only deductible if paid for yourself, a spouse, a dependent, or a person who qualifies as a dependent in every way except that they earn too much money (over the $4050 limit for qualifying relative dependent.)

Tax returns are largely on the honor system and less than 1% of returns are audited.  However, if audited, you could be subject to a penalty of 0.5% per month for the amount of understated tax, plus an additional 25% if the error was deliberate, plus interest on the tax and penalties at an APR of around 4%.  Not to mention the time and trouble involved.  You can be audited for 3 years from the filing date, or 6 years if the understatement of tax was substantial (more than 25% of your overall tax bill.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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12 Replies
xmasbaby0
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Who is the person?  Is this person listed as a dependent on your tax return?
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Not a dependent, and otherwise not associated with my tax return.
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Payments go directly to the pharmacy.
xmasbaby0
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

No.  That is a very kind  and generous thing to do, but gifts to individuals are not deductible.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Technically it's a gift to a pharmacy...for an individual.
xmasbaby0
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

The answer is still the same.  It is not deductible.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

The lizard part of my brain tells me there would be no red flag for the IRS to pickup on since it's all in my name.
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

The lizard part of my brain is also telling me that that would make me a drug dealer: I buy a drug using that person's Rx and then give it to him.
Opus 17
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

If the prescription is legally in someone else's name and that person ultimately gets the medication, then you don't have legal issues as a "drug dealer" or anything else, as long as you aren't adulterating the substance or re-selling it to the prescription holder at a higher price.  You are effectively gifting money equal to the cost of the prescription to this person.  Which is generous but not tax deductible.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
jb1872
New Member

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

To xmasbaby0 and Opus 17: Thanks for your help. I've exiled the lizard part of my brain back to the desert.
xmasbaby0
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

You are welcome.  We would not want your good deed to end up biting you.  As in "no good deed goes unpunished."
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Opus 17
Level 15

Can I deduct prescription medications and drugs I pay for another individual that I paid directly to that individual's pharmacy?

Medical expenses are only deductible if paid for yourself, a spouse, a dependent, or a person who qualifies as a dependent in every way except that they earn too much money (over the $4050 limit for qualifying relative dependent.)

Tax returns are largely on the honor system and less than 1% of returns are audited.  However, if audited, you could be subject to a penalty of 0.5% per month for the amount of understated tax, plus an additional 25% if the error was deliberate, plus interest on the tax and penalties at an APR of around 4%.  Not to mention the time and trouble involved.  You can be audited for 3 years from the filing date, or 6 years if the understatement of tax was substantial (more than 25% of your overall tax bill.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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