I.R.S. Tax Credit for Hypnosis?

You May be Eligible to Get Reimbursement for your Weight Loss and/or Smoking Cessation Hypnotherapy Programs with an I.R.S. Tax Credit, or at the very least, claim your Stop Smoking program as a medical deduction!

Tax laws passed for 2003 onwards mean you could possibly get a tax credit that reimburses you for money paid for smoking programs. If you do not qualify for the credit, you can claim Stop Smoking programs as a medical deduction.

You can also claim weight loss programs as a medical deduction if you were advised by a physician to lose weight.

Tax credits are credits on your taxes! Medical deductions are medical expenses claimed that exceed 7.5% of your gross annual income. Give the receipt to your tax preparer, and they will file for you.

The information below is presented as a courtesy from Academy of NLP & Hypnosis and is quoted from pages 12 and 15 of IRS Publication 502 year 2003.

Stop-Smoking Programs

You can include in medical expenses amounts you pay for a program to stop smoking. However, you cannot include in medical expenses amounts you pay for drugs that do not require a prescription, such as nicotine gum or patches that are designed to help stop smoking.

If you choose to claim it as a medical expense, your tax preparer will help you with that also. Just hand in the receipt and it will go with your other medical expenses.

Weight-Loss Programs

You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, diabetes or heart disease). This includes fees you pay for membership in a weight reduction group and attendance at periodic meetings. You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities.

How to report a credit if you choose to go that route:

You can take this credit only if (a) you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient in 2004, (b) you cannot be claimed as a dependent on someone else’s 2004 tax return, and (c) you met all of the other conditions listed on line 1. If you cannot be claimed as a dependent on someone else’s 2004 tax return, complete Form 8885, Part I, to see if you are eligible to take this credit.


To claim the credit, complete Form 8885, Health Coverage Tax Credit, and attach it to your Form 1040 or Form 1040NR. Report the credit on Form 1040, line 67, or Form 1040NR, line 62, and check box c. You cannot claim the credit on Form 1040A or Form 1040EZ.

You must attach invoices and proof of payment for any amounts you include on line 2 of Form 8885 for which you did not receive an advance payment. If you file your return electronically, attach the invoices and proof of payment to your Form 8453. Proof of payment may include a pay stub if insurance is through a spouse's employment, a bank check, or bank statement for premiums that are automatically deducted from your account.

If you claim this credit, you cannot take the same expenses that you use to figure your health coverage tax credit into account in determining your:

Medical and dental expenses on Schedule A (Form 1040)

Self-employed health insurance deduction, or

Archer Medical Savings Account (MSA) distributions.

If you choose to claim it as a medical expense instead, your tax preparer will help you with that also.

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