Over The Counter Medications (OTC) ?

What you always thought is correct. You can only deduct the cost of medicine that REQUIRES a prescription. You cannot deduct the cost of medicine that does not require a prescription, even if your doctor writes a prescription for it.

Bob Sandler

The answer is correct. However, for purposes of tax-free reimbursements from an FSA, HRA and HSA, OTC medicines purchased with a Dr.'s prescription count the same as any prescription drug. This change was implemented in the Affordable Care Act.

If your Physician "Prescribes" a medication, or whatever, that is "Over The Counter" (OTC), is this deductable as a Medical Expense on one's 1040 ?

It is not. Aspirin, vitamins and similar over the counter drugs are not deductible as medicines, because drugs are only deductible if they are obtainable by prescription. (If they can only be obtained by prescription, they are deductible. If they are obtained by a prescription but can be obtained over the counter, they are not.)

IRS Rev. Rul. 2003-58, citing IRC Sections 213(b) and 213(d)(3), limits the deduction for medicine and drugs to those requiring a doctor's prescription.

While the prescription may be of no tax help on the federal side, in my state (Alabama), OTC drugs, normally subject to sales tax, are sales tax exempt when prescribed by a doctor.

Bob Sandler wrote in news: snipped-for-privacy@4ax.com:

I am a Type 1 (insulin dependent) diabetic. My doctor perscribes blood sugar test strips. No perscription is REQUIRED by anybody to purchase such. Still, this cost is FULLY deductable.

On the other hand, my doctor wrote a perscription for aspirin to protect against heart attacks which was NOT allowed.

Who knows?

Your strips have to do with diagnosis and mitigation of your disease. It has nothing to do with prescription drugs vs OTC drugs. Additionally, insulin is an exception to the prescribed drug required.