I've heard that it can damage one's kidneys and cause liver failure. How much of that is true?
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Intermittent short time use, staying within dosage guidelines is definitely safe. Overdosage over a short time, sometimes just a single overdosage, can do serious damage to the liver. Sometimes fatal. Chronic long term use can damage the kidneys.
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Overdoses on Tylenol are the most common reason for liver failure and the need for liver transplants. That said, it must also be said that the reason for all that liver disease is not the Tylenol itself, which is probably the safest medication of any sort ever made, but the fact that it's ubiquitous, and people will manage to do something stupid given half a chance.
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Tylenol can cause liver damage just like alcohol use. It is a major cause of death from overdose in children