Well, on that note: it's possible, though I wouldn't say likely, that you could take the cost of surgery as a tax deduction. IRS regulations allow necessary medical expenses equalling 7.5% or more of income to be deducted. (That's "medical expenses YOU pay; if you had insurance that paid for it, you can't take it as a tax deduction, for anyone else reading this.)
That 7.5% rule is the kicker for most people--you may have some medical expenses that you pay out-of-pocket, but most of us don't pay thousands of dollars out-of-pocket for medical bills. Obviously, in your case, however, expenses will easily total more than 7.5%.
The key word here for you would be "necessary." Generally speaking, cosmetic surgery (breast implants, electroylsis, facelifts, etc.) are not considered necessary. (Lasik surgery, however, is.) However, cosmetic surgery to correct a congenital defect is accepted as deductible. So, the first question would be "Does the IRS consider being transgendered a congenital defect?" and the second is "If it does, is cosmetic surgery considered a necessary remedy?" (Accepting a medical need to be a woman is not the same as accepting a need to be a supermodel.)
I couldn't find anything from the IRS addressing the specific question of transgendered individuals. I happened on one web site that said electrolysis for MTF people was tax-deductibe, but you can find websites toting a "slave credit," so I wouldn't give that much weight. Easiest way to find out would be to write the IRS and ask.
In truth, you could take it as a deduction, and there's probably a 95% chance that even if the IRS isn't SUPPOSED to allow it, you will get it anyway and no one will ever say squat about it to you. (There is no "slave credit" in the tax code, but hundreds of people have filed for it and BEEN PAID for it despite that fact. The IRS doesn't look very closely at most returns.) The 5% of the time where your return is questioned would be enough to make ME want to check first, however.
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timeasmymeasure
Re: Wow.
Date: 2002-08-23 08:08 pm (UTC)That 7.5% rule is the kicker for most people--you may have some medical expenses that you pay out-of-pocket, but most of us don't pay thousands of dollars out-of-pocket for medical bills. Obviously, in your case, however, expenses will easily total more than 7.5%.
The key word here for you would be "necessary." Generally speaking, cosmetic surgery (breast implants, electroylsis, facelifts, etc.) are not considered necessary. (Lasik surgery, however, is.) However, cosmetic surgery to correct a congenital defect is accepted as deductible. So, the first question would be "Does the IRS consider being transgendered a congenital defect?" and the second is "If it does, is cosmetic surgery considered a necessary remedy?" (Accepting a medical need to be a woman is not the same as accepting a need to be a supermodel.)
I couldn't find anything from the IRS addressing the specific question of transgendered individuals. I happened on one web site that said electrolysis for MTF people was tax-deductibe, but you can find websites toting a "slave credit," so I wouldn't give that much weight. Easiest way to find out would be to write the IRS and ask.
In truth, you could take it as a deduction, and there's probably a 95% chance that even if the IRS isn't SUPPOSED to allow it, you will get it anyway and no one will ever say squat about it to you. (There is no "slave credit" in the tax code, but hundreds of people have filed for it and BEEN PAID for it despite that fact. The IRS doesn't look very closely at most returns.) The 5% of the time where your return is questioned would be enough to make ME want to check first, however.