It's no secret that massages are a potent tool for physical and mental relaxation. But the question arises - are massages tax deductible? This is an important consideration for both individuals seeking therapeutic relief and businesses looking to provide wellness perks to their employees.
In the following article, we’re going to take a look at some important points to know about the US tax code and massage therapy, including whether or not massages are tax deductible, and whether or not you can write off massages as a business expense. Let’s take a look!
The answer is not straightforward because it depends on the specific circumstances. According to the IRS, only medical expenses that are intended to diagnose, cure, mitigate, treat, or prevent a disease are tax deductible. This means massage therapy - whether hot stone massage therapy or traditional massage - could potentially be tax deductible if it's recommended by a physician for a specific physical ailment or condition.
For instance, if your doctor prescribes massages to help recover from an injury or manage a chronic condition, you may be able to include these costs in your medical expense deductions. Keep in mind that the IRS requires that these expenses exceed 7.5% of your adjusted gross income before you can claim them.
If you're a business owner wondering, "can I write off a massage as a business expense?" the answer is typically no. General health and wellness expenses for stress relief or overall relaxation aren’t considered necessary business expenses by the IRS, whether they’re mobile massages or salon massages.
However, there's an exception for companies that provide wellness programs as part of their benefits package. Massages offered onsite to all employees as part of a documented wellness program could potentially be deductible as a business expense. But the rules are intricate and vary by circumstance, so it's advised to consult with a tax professional.
For massage therapists wondering about their tax deductions, there are options. As self-employed professionals, they can deduct the cost of their necessary business expenses. These might include the purchase of equipment such as massage tables and chairs, oils, towels, or continuous education courses.
It's essential to know the tax code for massage therapists. They typically operate under the principal business code 621399 in their tax filings, which pertains to "Offices of All Other Miscellaneous Health Practitioners."
While there are cases where massage therapy can be tax deductible, they're generally limited to specific medical situations or business wellness programs. As always, it's important to consult with a tax advisor or a CPA to understand how these potential deductions apply to your personal or business tax situation. Remember, each case is unique, and what applies to one person or business may not apply to another.
As the popularity of massage therapy grows, perhaps we'll see a shift in how the IRS categorizes these treatments. Until then, knowing the nuances of the tax code can help you maximize your deductions and stay compliant with the IRS.
