Post by Ayla on Feb 1, 2016 10:37:10 GMT 8
Nothing in this document should be taken as legal or tax advice. We strongly suggest that you consult a tax
preparer or attorney, if you can. At a minimum, we recommend carefully reading all relevant IRS tax forms
and instructions, as well as relevant publications on the IRS website, especially Publication 502: Medical
and Dental Expenses.
IS TRANSITION RELATED MEDICAL CARE TAX-DEDUCTIBLE?
Yes. On November 21, 2011, the Internal Revenue Service (IRS) affirmed that transgender people can deduct the costs
of hormone therapy and sex reassignment surgery from their gross income as medical expenses for the treatment
of gender identity disorder (GID). This announcement indicates that the IRS will follow the United States Tax Court’s
2010 decision in O’Donnabhain v. Commissioner of Internal Revenue that a transgender woman’s medical expenses
for hormone therapy and sex reassignment surgery were legitimate treatments for GID and therefore tax-deductible
under Federal law. After considering extensive medical evidence and testimony from leading medical experts, the
court rejected the IRS’s previous interpre¬tation of the law that considered transgender people’s medical treatment
different than all other medically beneficial treatments.
The Tax Court ruled that hormone therapy and sex reassignment surgery (SRS) are legitimate, and often medically
necessary, treatments for transgender people. The court rejected the IRS’s contention that hormone therapy and SRS
are “cosmetic,” because the purpose and effect of these treatments is to alleviate suffering and enable a healthy life
rather than to improve a person’s aesthetic appearance. In light of the widespread recognition in the medical and
mental health communities that hormone therapy and SRS are appropriate and effective treatments, the court ruled
that hormone therapy and SRS are tax-deductible medical expenses. They also noted the existence and acceptance
among providers of the World Professional Association for Transgender Health (WPATH) Standards of Care.
The IRS’s November 2011 affirmation of the Tax Court’s ruling represents the IRS’s final position on the deductibility
of transition-related care. It means that the IRS will not appeal the Tax Court’s decision and will follow its holdings
that GID is a medical condition and that hormone therapy and SRS, as treatments for GID, are tax-deductible medical
expenses. As with other medical expenses, anyone seeking to deduct transition-related care from their adjusted gross
income must be able to document that they incurred these expenses as treatment for a medical condition.
DOES THIS MEAN I CAN DEDUCT MY HORMONE THERAPY AND SRS FROM MY 2009 OR 2010 TAXES?
Maybe...
www.transequality.org/sites/default/files/docs/resources/IRS_Factsheet_2012.pdf
preparer or attorney, if you can. At a minimum, we recommend carefully reading all relevant IRS tax forms
and instructions, as well as relevant publications on the IRS website, especially Publication 502: Medical
and Dental Expenses.
IS TRANSITION RELATED MEDICAL CARE TAX-DEDUCTIBLE?
Yes. On November 21, 2011, the Internal Revenue Service (IRS) affirmed that transgender people can deduct the costs
of hormone therapy and sex reassignment surgery from their gross income as medical expenses for the treatment
of gender identity disorder (GID). This announcement indicates that the IRS will follow the United States Tax Court’s
2010 decision in O’Donnabhain v. Commissioner of Internal Revenue that a transgender woman’s medical expenses
for hormone therapy and sex reassignment surgery were legitimate treatments for GID and therefore tax-deductible
under Federal law. After considering extensive medical evidence and testimony from leading medical experts, the
court rejected the IRS’s previous interpre¬tation of the law that considered transgender people’s medical treatment
different than all other medically beneficial treatments.
The Tax Court ruled that hormone therapy and sex reassignment surgery (SRS) are legitimate, and often medically
necessary, treatments for transgender people. The court rejected the IRS’s contention that hormone therapy and SRS
are “cosmetic,” because the purpose and effect of these treatments is to alleviate suffering and enable a healthy life
rather than to improve a person’s aesthetic appearance. In light of the widespread recognition in the medical and
mental health communities that hormone therapy and SRS are appropriate and effective treatments, the court ruled
that hormone therapy and SRS are tax-deductible medical expenses. They also noted the existence and acceptance
among providers of the World Professional Association for Transgender Health (WPATH) Standards of Care.
The IRS’s November 2011 affirmation of the Tax Court’s ruling represents the IRS’s final position on the deductibility
of transition-related care. It means that the IRS will not appeal the Tax Court’s decision and will follow its holdings
that GID is a medical condition and that hormone therapy and SRS, as treatments for GID, are tax-deductible medical
expenses. As with other medical expenses, anyone seeking to deduct transition-related care from their adjusted gross
income must be able to document that they incurred these expenses as treatment for a medical condition.
DOES THIS MEAN I CAN DEDUCT MY HORMONE THERAPY AND SRS FROM MY 2009 OR 2010 TAXES?
Maybe...
www.transequality.org/sites/default/files/docs/resources/IRS_Factsheet_2012.pdf