Will SRS be Tax Deductible?

[CaptLex]

Here's an article about a case that may help decide things:

http://news.aol.com/story/_a/irs-sued-over-sex-change-deduction/20070717104709990001?ncid=NWS00010000000001

[AmberTG]

It'll be interesting to see where this case goes.

[JeanneF]

I'm very interested to see the results of this.

I spent seven years in the financial services world (finally escaped into the wild world of advertising/public relations a few months ago), and this was a question for which I could never seem to find a definitive answer.

[Kimberley]

Being Canadian I know nothing of US law but I still have to wonder how the government or any branch of the government can decide what is and isnt a medical condition. Perhaps they can show everyone their medical degrees along with their accounting certificates.:Pfft:

I am sure they could send keynote speakers to address "The aberration of transgenderism as a life choice" at the next AMA convention and even decide what goes into the DSM-V when it comes out. Careful sisters, big brother is watching you.

:hugs:
Kimberley.

[JeanneF]

Being Canadian I know nothing of US law but I still have to wonder how the government or any branch of the government can decide what is and isnt a medical condition. Perhaps they can show everyone their medical degrees along with their accounting certificates.:Pfft:

I am sure they could send keynote speakers to address "The aberration of transgenderism as a life choice" at the next AMA convention and even decide what goes into the DSM-V when it comes out. Careful sisters, big brother is watching you.

:hugs:
Kimberley.

"Big brother" isn't really this issue. The question is whether it's a medical necessity (which most of us would agree it is) or cosmetic surgery. If the court decides to allow the deduction based on medical necessity, it can be used as precedent in other cases (such as demanding health insurance cover SRS). The ramifications of this could be much greater long-term than just a tax deduction.

Under US Tax Law, a medical necessity that is not covered by health insurance can be deducted from your taxes as an "unreimbursed health care expense", essentially saving you 30-50% of the cost of the surgery, depending on your tax bracket.

However, cosmetic surgery (breast implants for your girlfriend, for example) is considered to be unnecessary and as such is not tax-deductible.

[Kimberley]

Lisa, maybe my sarcasm was missed. My point was and still is that government agencies at arm's length from the health care system should not be deciding what is and isnt medical necessity. If the case is to be made as to whether it is a necessity then is should be within the medical system not within the tax system. If a court challenge result shows that it is a necessity then the other branches of government should fall in line.

To draw a loose parallel if I may, consider your auto mechanic deciding a divorce settlement... who gets the car?

Incidentally, it (SRS) is no longer covered under Canadian health care systems.

[BrendaB GG]

Incidentally, it (SRS) is no longer covered under Canadian health care systems.

Does it depend on where you are in Canada? Here in BC, it is still covered under MSP as long as you meet the 2 yr RLE and jump through a few hoops.
My understanding is that includes SRS for mtf and top surgery for ftm's.

[Kimberley]

Brenda you are right, BC still does it but I believe that is a provincial decision to fund. Here in Ontario it is not covered. So that tells me it is a prov. decision and not a federal one under the healthcare acts. If it were a federal decision then every province would have to fall in line. I am not sure why the individual provinces are in different places on this because GID is recognized as a medical condition and SRS is definitely not cosmetic by any standard. FFS yes, that is cosmetic but not SRS.

Guess that is what happens when politicians get into the act. Maybe one day they will actually get around to cleaning up the mess created by funding cuts to healthcare. Nahhh to do that they would have to quit buying military hardware. What are one or two trannies when they can blow things up?

I know, I am being sarcastic again. Cant help it... just cant help it.

:hugs:
Kimberley

[Katie Ashe]

Tax deductable no; Insurance covered, should be/yes.

I wish the people whom make our countries decission would MYOB about what they thing is best for everyone. Funny how they get pay raises every year no matter what, no vote needed for that is there.

This is not a choice of life, the color of paint is. Predudicious Pricks.

[Marcie Sexton]

Duuuhhhh...

It will never happen:Angry3:, no tax deduction here in the good ole US of A...

as mentioned in the previous post it would create much to many ramafactions for the fed...You know as well as I do that if its a no go on pro choice for a woman, then you bet your sweet bippy srs won't float...:2c: