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

[jb1872]

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

[xmasbaby0]

Who is the person?  Is this person listed as a dependent on your tax return?

[jb1872]

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

[jb1872]

Payments go directly to the pharmacy.

[xmasbaby0]

No.  That is a very kind  and generous thing to do, but gifts to individuals are not deductible.

[jb1872]

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

[xmasbaby0]

The answer is still the same.  It is not deductible.

[jb1872]

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]

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]

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.

[jb1872]

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

[xmasbaby0]

You are welcome.  We would not want your good deed to end up biting you.  As in "no good deed goes unpunished."

[Opus 17 · Accepted solution]

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.)