Can I claim medical marijuana or cannabis products as a medical expense?

by TurboTax• Updated 10 months ago

Qualifying taxpayers can claim expenses for medical marijuana and cannabis products in order to receive the nonrefundable medical expenses tax credit.

If you have a prescription and buy your products from a licenced seller with whom you’re a registered client, you can claim cannabis, cannabis oil, cannabis plant seeds, and cannabis products.
If you legally grow cannabis for your own medical purposes, you can't claim equipment costs such as pots, soil, nutrients, and lights.
Cannabis expenses are entered into TurboTax the same way as other medical expenses.

Entering medical expenses in TurboTax Online

Select Find from the menu.
Enter medical and select Medical Expenses Profile from the list of results, then select Go.
On Your Medical Profile, select all checkboxes that apply, then select Continue.
On the Medical Expenses screen, you'll see the minimum amount of eligible medical expenses needed to generate a tax benefit.

Note: If the eligible medical expenses are less than the minimum amount displayed by TurboTax, select Done, as there aren't enough expenses to generate a tax credit. Otherwise, select Enter New Medical Expense and another Medical Expenses screen appears.

When entering receipts individually

Select Add Medical Receipt.
Fill out the form, then select Enter New Medical Expense, repeating this step until all receipts are entered.
Select Done.

When entering a single entry of the total amount of medical receipts

Enter the total amount of the medical receipts.
Select Done.

Entering medical expenses in TurboTax Download

Select Find from the menu.
Enter medical and select Medical expenses profile from the list of results, then select Go.
On Your medical profile, select all checkboxes that apply, then select Continue.
On the Medical expenses screen, you'll see the minimum amount of eligible medical expenses needed to generate a tax benefit.

Note: If the eligible medical expenses are less than the minimum amount displayed by TurboTax, select Done, as there aren't enough expenses to generate a tax credit. Otherwise, select Enter Expenses and the Medical receipt screen appears.

When entering receipts individually

Fill out the form, then select Enter Expenses, repeating this step until all receipts are entered.
Select Done.

When entering a single entry of the total amount of medical receipts

Fill out the form once by entering the total amount of the medical receipts, then select Done.
Make sure the date entered is in the same tax year as your return.
The Medical expense summary appears. Review your information, and if more needs to be added, repeat the above steps. Once completed, select Done With Medical Expenses.