The IRS has issued a decision (.pdf) in a case called O’Donnabhain v. Commissioner, in which they decided that hormone therapy and sexual reassignment deductible care under the United States Tax Code.
The Plaintiff, Ms. O’Donnabhain, paid expenses out of pocket for hormone therapy and sexual reassignment surgery and deducted them on her taxes as medical expenses. The IRS now agrees with her. The relevant section of the tax code is:
“Section 213 of the Internal Revenue Code allows a deduction for the expenses paid during the taxable year, not compensated for by insurance or otherwise, medical care of the taxpayer. Medical care, as defined in 213(d)(1)(A), includes amounts paid for the treatment of disease. Section 213(d)(9)(B) excludes from the definition of medical care any procedure that is directed at improving the patient’s appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease.”
The moral of the story here is that transgendered people can now deduct out of pocket transition related medical expenses on their taxes. Yay! Less taxes and more money! Make it rain!