Writing Off Weed: Is Your Medical Marijuana Tax Deductible?


As tax time gets closer, an interesting question that accountants have been getting from medical marijuana users is, “can I make my pot tax deductible?” Considering the fact that Americans can write-off their medical expenses, it does seem like a valid question.

The issues is that since marijuana is still federally illegal, users still can’t deduct it as a medical expense on their federal income tax returns. According to an article in Yahoo Finance, since marijuana is still considered illegal in the United States, the IRS clearly states that medical marijuana doesn’t qualify for a federal tax deduction. So in other words, there’s no way to report that expense as a way to reduce your adjusted gross income and taxable income.

That’s fairly easy to understand, but what about states where marijuana is legal? Would you be able to write off your weed for state taxes? Barbara Weltman is an attorney and contributing editor to J.K. Lasser’s “Your Income Tax” book series. She says, “Probably not. Many states follow federal rules—using federal adjusted gross income for the basis of state income tax—so it wouldn’t be deductible in these states.” That said, Weltman did suggest checking directly with your state’s taxing authority.


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