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.
Tax Glossary

Salvage value

The estimated value of an asset at the end of its useful life. Salvage value is ignored by ACRS and MACRS rules.

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