GF-Only item

A GF-Only item is an item with no real non-gluten-free counterpart. Xanthan gum. Sorghum flour. Certified gluten-free oats. Specialty mixes. Some niche dietary supplements. Items where the household is buying the product specifically because there is no ordinary-diet version.

For Schedule A, GF-Only items count differently from the rest of the basket. The general GF premium rule (from Revenue Ruling 55-261) counts the increment over the ordinary-diet equivalent. For a GF-Only item there is no equivalent, so there is no increment to subtract; the full price counts as a medical expense. The IRS confirmation of this mechanic is in IRS Information Letter 2011-0035 and in the discussion at Publication 502.

In Gluten Hero, the GF-Only flag on an item tells the app to use the full price in the medical total rather than asking for a regular price. The flag also keeps the item out of the comparable basket; a basket is by definition a set of pairs, and a GF-Only item has only one side.

When to use the flag. The test is the shelf next door. If a non-gluten-free version of this product exists somewhere in mainstream grocery, the item is comparable and belongs in the basket with both prices. If the product only exists because of the gluten-free diet (the household would not be buying it otherwise), it is GF-Only.

Edge cases. Gluten-free flour blends have non-gluten-free counterparts (regular all-purpose flour); they are comparable, not GF-Only. Certified gluten-free oats have an oats counterpart but the certification is a celiac-safety requirement and the price difference reflects that; reasonable households flag them either way. Vitamins specifically formulated to be gluten-free are usually GF-Only.

For the full concept, read Building the gluten-free vs gluten control basket.