Payments for prescription drugs, over-the-counter drugs, and medical services are
deductible only if such drugs and services are prescribed and necessary for control
of the disabling condition to enable the person with a disability to work, and if
the person pays for them.
Control refers to reducing or eliminating symptoms or slowing down progression of
Even if the drugs or medical services do not control the impairment, payments for
such items are deductible if the drugs or medical services were provided with the
medical objective of controlling the condition.
Examples of items in this category are anti-convulsant drugs; blood level monitoring;
radiation treatment or chemotherapy; corrective surgery; co-payments and deductibles
for drugs and medical services and antidepressant medications.
Drugs, medical, dental, or optical services that are not directly related to the impairment(s)
cannot be deducted as IRWE. The cost of premiums for health and/or life insurance
cannot be deducted as IRWE.
Prescription drugs that are a violation of Federal law (e.g. medical marijuana) cannot
be deducted as an IRWE, even if allowed by State law. However, per the 2018 Farm Bill,
hemp products (e.g., CBD oil) that contain no more than 0.3 percent tetrahydrocannabinol
(THC) on a dry-weight basis are now federally legal and no longer defined as "marijuana".
Therefore, as of 12/20/18, such products could be deducted as an IRWE. The product
user would need to provide documentation of a legal prescription and a relationship
to their impairment(s).
Payments for diagnostic procedures are deductible only if the objective of the procedures
is related to the control of the disabling condition to enable the person to work,
and the person pays for such procedures. For example, payment for a diagnostic procedure
is deductible if it is performed to ascertain how the impairment is progressing or
to determine what type of treatment to provide for the impairment.
Examples of items in this category are electroencephalograms, brain scans, or tests
to determine appropriate medications.
2. Drugs and Services for Minor Physical or Mental Conditions
Payments for drugs or medical services which are used by the person with a disability
only for minor physical or mental problems not resulting in any significant loss of
function are not deductible. Examples of such items and services are: yearly routine
physical examinations, allergy treatment (when such condition does not constitute
a disabling condition), dental examinations, optician services and eyeglasses (when
unrelated to a disabling impairment).
3. Medical Supplies and Services
Payment for medical supplies and services are deductible if the supplies and services
are related to the control of the disabling condition to enable the person with a
disability to work and if the person pays for them, and includes payment of deductibles
and co-payments. Included are physical therapy, and medical supplies of an expendable
nature, such as incontinence pads, catheters, bandages, elastic stockings, face masks,
irrigating kits, and disposable sheets and bags.