1(800) 615-1067Yes, alcohol rehab may be tax deductible under certain circumstances. If you or a dependent receive alcohol rehab treatment for alcoholism or drug addiction, you may be able to claim the cost of treatment as a medical expense deduction on your federal income tax return.
To qualify for the medical expense deduction, the cost of alcohol rehab and other medical expenses must exceed a certain percentage of your adjusted gross income (AGI). The threshold for deductible medical expenses is 7.5% of your AGI for tax years 2020 and 2021. If your total medical expenses for the year exceed this threshold, you may be able to claim them as a deduction on your taxes.
However, it’s important to note that not all alcohol rehab expenses are tax deductible. Only the portion of the expenses that exceed the threshold and are not covered by insurance or other reimbursements are eligible for deduction.
It’s recommended to consult with a tax professional or accountant to determine if your alcohol rehab expenses qualify for a tax deduction and how to properly claim the deduction on your tax return.