Sex-Change Medical Costs Are Tax-Deductible, U.S. Court Rules

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  • Y2KEA
    Senior Member
    • Nov 2005
    • 344

    #1

    Sex-Change Medical Costs Are Tax-Deductible, U.S. Court Rules

    Anybody have any clients who may affected by this?
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  • Edsel
    Senior Member
    • Feb 2008
    • 238

    #2
    I hope not

    But if I have any I will be sure to deduct the medical expense in accordance with the courts' ruling and wish them godspeed. Without getting into social issues, I wonder how they addressed the fine line between desired physiological change and medical necessity.

    i.e. an amputation for gangrenous limb versus a botox injection

    Comment

    • gkaiseril
      Senior Member
      • Feb 2007
      • 567

      #3
      For those who would rather see the U.S. Tax Court decision:

      Comment

      • taxea
        Senior Member
        • Nov 2005
        • 4292

        #4
        Edsel...it is psycological health and wellbeing.
        Believe nothing you have not personally researched and verified.

        Comment

        • geekgirldany
          Senior Member
          • Jul 2005
          • 2359

          #5
          I suppose the IRS was saying it was cosmetic only not medically necessary. With the psychological diagnosis, I believe that knocked the cosmetic stand out of the water.

          I won't get into the social right or wrong. But people who do this have to go through alot to even get to the surgery part. Add on physicist and the hormones. They are paying out quite a bit of money. I watched a documentary about it on the BBC one day.

          If the doc says it is psychological, then its a medical deduction

          Comment

          • HRB_TMW
            Junior Member
            • Feb 2010
            • 5

            #6
            There are many "cosmetic" procedures which could be considered medically necessary. Until the medical/ insurance community deems it so, I don't understand why the IRS Court would take this stand independently.

            Comment

            • gkaiseril
              Senior Member
              • Feb 2007
              • 567

              #7
              Have you read the decision?

              The decision text starts with:

              "In 1997, P, born a genetic male, was diagnosed with gender identity disorder, a condition recognized in medical reference texts, in which an individual experiences persistent psychological discomfort concerning his or her anatomical gender."

              The determination was made by a state licensed professional who in the state of licensing can make this decision:

              "Although not a medical doctor, Ms. Ellaborn had a master’s degree in social work and as an LICSW was authorized under Massachusetts law to diagnose and treat psychiatric illnesses."

              Comment

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