Sexual-reassignment surgery is expensive, I am given to understand. At least it’s deductible:
The U.S. Tax Court ruled Tuesday that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation, a decision that could have broad implications for transgender people.
Rhiannon O’Donnabhain, who was born a man, sued the Internal Revenue Service after the agency rejected a $5,000 deduction for approximately $25,000 in medical expenses associated with the sex-change surgery.
The IRS said the surgery was cosmetic and not medically necessary.
O’Donnabhain’s lawyers argued that the surgery was a proper treatment for gender-identity disorder, generally accepted as a disorder, and that the deduction should be allowed.
Not all of her expenses qualified, however:
The tax court said O’Donnabhain could deduct as a medical care expense the costs associated with treating her gender-identity disorder, including sex-reassignment surgery and hormone therapy. But the court said she could not deduct the costs of breast augmentation surgery because it found that she had achieved breast enhancement through hormone treatments.
Recap: Do not include breast-augmentation costs on Schedule A.
(Seen at Interested-Participant.)