Michael Lodge –
Clients have been sending e-mails to me regarding the deduction of marijuana
You can’t include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc.) that aren’t legal under federal law, even if such substances are legalized by state law. (Publication 502)
Even though your state may have approved the use of Medical Marijuana it is still a crime under federal law. It is not legal, thus it is not a medical expense. go to Publication 502 of the IRS. So if you are going to a tax preparer and they are letting you take joints as a medical expense, you are opening yourself up for a issue.
However, most everyone do not have enough medical expenses to go over the threshold for this deduction. So even if it were legal to deduct, you probably would not go over the threshold of medical expenses. To know if you can go over the threshold, Multiply your adjusted gross income by 10% (0.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead. So let’s say that your AGI is $75,000 x 10% = $7,500. So your medical expenses would have to go over $7,500 to meet the threshold.
If you have questions please call our office at 877.778.1770.