Don’t like that widening bald spot? The good news is it may lead to a tax deduction. The IRS allows patients whose hair loss has been medically traced to a disease to write off the cost of a wig, if a doctor recommends buying one to improve mental health.
The bad news: Deductions for hair transplants are a lot harder to get. Regardless of the reason for the hair loss – age, illness, gross underestimation of the power of a blowtorch – the IRS categorizes hair transplants as cosmetic surgery, which is usually nondeductible. Only if it is directly related to a limited number of circumstances, such as an injury, can taxpayers write off cosmetic surgery on their tax returns.
