May 5, 2022 4:41 am

Is Health and Wellness Coaching a Qualified Medical Expense?

The IRS indicated in an informal ruling that costs incurred for health and wellness coaching under a health savings account, flexible spending account, or other tax-preferred account could be a qualified expense when a physician or other qualified medical professional diagnoses a patient with a specific disease or chronic health risk and recommends the coaching (IRS INFO 2022-005). The coaching must be done to prevent or alleviate a disease or chronic health risk.

Things to consider in determining whether the costs of health and wellness coaching are deductible as medical expenses:

  • Whether the costs are incurred in diagnosing, treating, mitigating, preventing, or alleviating a disease. These costs would qualify as deductible medical expenses.
  • Whether the costs are merely beneficial to general good health. These costs are viewed as a nondeductible personal expense; they do not qualify as deductible medical expenses.
  • Whether the costs would have been incurred but for the medical condition. These costs likely would qualify as deductible medical expenses.
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Tax Glossary

Carryback

A tax technique for receiving a refund of back taxes by applying a deduction or credit from a current tax year to a prior tax year. For example, a business net operating loss may be carried back for two years.

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