Sales Tax on Medical Expenses

[Guest mmcgee]

Does anyone know where I can find guidance on reimbursing sales taxes on medical expenses (i.e. prescriptions)?

[GBurns]

Isn't sales tax part of the cost of the item??? Do you deduct the sales tax or other taxes and fees from the hospital or other provider charges? Do you even look to see if there are any?

[Guest RAJ]

Typically, sales tax should be reimbursable as long as the cost is associated to the medical care or product purchased. The only regulatory reference I can find is an analogy relating to dependent care expenses under Treas. Reg. 1.44A-1©. It refers to the cost of FICA and other related taxes for wages paid to a dependent care provider (i.e. Nanny).