Can You Deduct Addiction Treatment Costs from Your Taxes?

Alcohol and drug addiction can have a devastating effect on the entire family. It's important to understand how substance abuse treatment works, how family interventions can be a first step to recovery, and how to help children from families affected by alcohol and drug abuse. The cost of drug and alcohol rehab can be high, and if you opt for a high-end addiction treatment center to ensure you have access to everything you need during your recovery, you can end up with a hefty bill. So what addiction treatment costs are included as acceptable medical expenses that can be deducted? According to Article 213 (d) (A) of the Tax Code, medical costs are defined as “the diagnosis, cure, mitigation, treatment or prevention of a disease.” The IRS agrees that the costs incurred in drug addiction treatment are absolutely a medical expense and, as such, qualify as a deduction for those who itemize and whose expenses exceed 7.5 percent of their income.

You can include in your medical expenses the amounts you pay for the treatment of a patient hospitalized in a drug addiction treatment center. Medical expenses may include any aspect of your substance use treatment, such as the costs of diagnosis, mitigation treatment, or prevention and medical services. Few situations are more stressful than needing addiction treatment for yourself or a loved one and trying to figure out if you can afford it or not. Fortunately, there are ways to make it more affordable.

What Addiction Treatment Costs Are Deductible?

The IRS allows you to deduct certain costs associated with addiction treatment from your taxes.

According to Article 213 (d) (A) of the Tax Code, medical costs are defined as “the diagnosis, cure, mitigation, treatment or prevention of a disease.” This includes the cost of inpatient care at an alcohol addiction treatment center. This includes meals and lodging provided by the center during treatment. You can also deduct any other costs associated with addiction treatment such as doctor's visits, prescription medications, counseling sessions, and other related expenses. However, it's important to note that these deductions only apply if you itemize your deductions on your tax return and if your total medical expenses exceed 7.5 percent of your adjusted gross income.

How Can I Make Addiction Treatment More Affordable?

If you're struggling to afford addiction treatment for yourself or a loved one, there are several options available that can help make it more affordable. Many insurance plans cover some or all of the cost of addiction treatment.

Additionally, some states offer Medicaid coverage for addiction treatment services. You may also be able to take advantage of sliding scale fees at certain rehab centers or apply for grants or scholarships from organizations that provide financial assistance for addiction treatment. Finally, some rehab centers offer payment plans that allow you to pay for your treatment over time.

Conclusion

Addiction is a serious problem that affects millions of people every year. Fortunately, there are ways to make addiction treatment more affordable so that everyone has access to the help they need. By understanding what addiction treatment costs are deductible from your taxes and taking advantage of other options such as insurance coverage or payment plans, you can make sure that you or your loved one gets the help they need without breaking the bank.