Mom essentials have a way of keeping your baby happy and your wallet sad. Thanks to a forever-dwindling amount cash, parents are regularly searching for new ways to save on everything from diapers to baby formula. Since tax season is here, you're probably thinking of what to deduct from your taxes. Think about this: "Can I deduct baby formula from my taxes?"
In general, no. According to one individual case from the Internal Revenue Service (IRS), formula is considered food if the baby is healthy and does not have any medical issues. The case involved a mother who underwent a double mastectomy was not able to breastfeed her healthy baby. In that specific case, which can't be used as precedent, the IRS ruled that the formula was food for the baby and wasn't a medical expense for the baby. The mother's request for it to be treated as a medical expense was denied. But that doesn't mean you can't get some kind of money back for the formula you buy. According to TurboTax, you can donate leftover baby formula, which is tax deductible.
It's also worth noting that formula isn't the be all, end all for tax breaks. As it turns out, there are other ways to get a tax break as a parent. According to the IRS Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for children younger than 17. Additionally, the Child and Dependent Care Credit can help you to cover childcare expenses, which includes nursery schools. According to the IRS, you can claim a credit equal to 20 percent of amounts up to $3,000 per child for child care expenses, or $6,000 for two or more children if you have an adjusted gross income of $43,000 or more.
So, while there's a gray area when it comes to whether baby formula is tax deductible, you can have peace of mind knowing there are other methods for you to get a well-deserved tax break. It's time to get to crunching those numbers.