SRS and taxes

[KarenLyn]

This is mostly for those who are post op, but it may include those who've had ba's, orchies or for the FtoMs, mastectomies.
I've heard you can claim them under medical expenses on your taxes. Does anyone know for sure one way or the other? I've already been in trouble with the IRS more than I like and don't want to get in hot water again.

Karen Lyn

[Dennis]

I claimed mine with no problem, but I'm Canadian. YMMV.

Dennis

[ssindysmith]

According to my BF [he's a corporate tax attorney] you can, the IRS can care less what your medical expenses are, only you must do a long form the medical expenses occurred in the tax year and that only a certain percentage of your overall medical expenses can be deducted according to your FGAI [Final Gross Adjusted Income]

[cindianna_jones]

I deducted mine.  Keep track of your bills, payments, and receipts.  Just fill out the right forms. You'll be fine.  If you ever get audited, show them the receipts.  You have no obligation to tell them what the medical expenses are for. It's none of their business.

Cindi

[KarenLyn]

Well kewl, that takes some of the sting out of it.
Still a couple years away but I'm already getting excited. 

Karen Lyn

[tinkerbell]

This is truly interesting.  I haven't heard anything regarding this, but of course, I will look into it during tax season next year.  It'd definitely be wonderful if I could deduct any amount really.  Needless to say I will have to seek professional tax advice next year.  Wow, I'm already excited, and I don't even know if this is indeed feasible!  LOL   

tink

[LynnER]

As a tax accountant...... Yes you can deduct GRS, FTM's top surgery, orchi's..... i dont remember on BA's as those are considered cosmetic but I'll get back to you on that one 

[tinkerbell]

As a tax accountant...... Yes you can deduct GRS, FTM's top surgery, orchi's..... i dont remember on BA's as those are considered cosmetic but I'll get back to you on that one 

Are you serious, Lynn?  That'd be wonderful! If you don't mind, could you keep me posted, thanks a bunch.

tink

[LostInTime]

'tis true, in the US you can deduct the expenses.  I have known of gals who did so for their electro and for surgery. Every so often one will get audited but I do not think any of them have lost the deductions. I believe it is everything above 7.5% AGI?

LIT, not a tax accountant

[melissa90299]

The bottom line is that you should you claim anything that is reasonable and doesn't raise a red flag. The legal question of whether or not TS BAs are deductible is not a settled issue. A legal argument could be made that such procedures are necessary and, therefore, fully deductible. My accountant says when in doubt, take the deduction. (If it's not a red flag)

[seldom]

As a legal person, GRS/SRS is considered a legitimate medical expense.  But Breast Augmentation and FFS are without question considered cosmetic and you cannot deduct them.   So do not even risk claiming them unless you want to have the pain of an audit. 

[RebeccaFog]

This is mostly for those who are post op, but it may include those who've had ba's, orchies or for the FtoMs, mastectomies.
I've heard you can claim them under medical expenses on your taxes. Does anyone know for sure one way or the other? I've already been in trouble with the IRS more than I like and don't want to get in hot water again.

Karen Lyn

Then if I were you, I wouldn't be asking     >   



Just kidding,

Rebecca

[melissa90299]

As a legal person, GRS/SRS is considered a legitimate medical expense.  But Breast Augmentation and FFS are without question considered cosmetic and you cannot deduct them.   So do not even risk claiming them unless you want to have the pain of an audit. 

What exactly is  a legal person?

How exactly does claiming a medical deduction trigger an audit?

How exactly can FFS be considered cosmetic when the IRS is not even provided that specific of an indication of the nature of the surgery? All the IRS knows or will know about my surgery is that I underwent a necessary surgical procedure to correct my medical condition i.e. gender dyshoria.

Don't be stupid. Take the deduction unless your tax advisor counsels you otherwise.

[LynnER]

if your claiming an extreemly high deduction in any area its a red flag....  Most expensive surgeries are covered by some type of insurance and not paid out of pocket....  GRS for 20k or less is one thing...  FFS which avrages upwards of 40k is a whole other.... and when the IRS is knocking on your door do you want to show them the reciept for something vallid or smile and say.  "Well sir...  I thought I could deduct this beautiful face and the twins heh heh heh."

[melissa90299]

I don't cower in fear over facing the IRS, I have taken all kinds of questionable deductions over the years. I underwent a procedure to correct a medical condition i.e. gender dysphoria. IMNSHO and the opinion of my tax accountant who is also a lawyer is that the cost is deductible. As well, Dr Ousterhout's office has advised me to claim the deductions, there didn't even seem to be a question about it. The State of California paid me SDI benefits for the time I was out of work.

If anyone here can cite an IRS ruling in which an FFS deduction has been disallowed, I would love to see it. I remember reading that BA's for GG women are considered cosmetic. A strong legal case could be made, however, that BAs for transwomen are/should be deductible. I have access to legal help, if the deductions are disallowed, I am prepared to go to court. I live in San Francisco and there is all kinds of support for transwomen that is not available in most places. I would love to take on the IRS to fight for my (our) rights.

From trsroadmap.com:

My gross income for said year was $105,300.00. Medical deductions were made on line 36
of form 1040, and the information for line 36 was itemized separately on the Schedule A
form. Total medical expenses for my FFS appeared on line 1 of Schedule A. Below are the
details:
FFS $32,500.00
FFS & other deductions $36,800.00
Taxable income less deductions $68,500.00
Total taxes paid at 33% $22,600.00
Refund from IRS $7,100.00
Bottom line: don't count on a tax refund until that check is in your hot little hand

[KarenLyn]

Thanks everyone for your replies. I'll definitely be claiming the deduction on my taxes.

♪ Karen Lyn ♫

[melissa90299]

I just talked to Mira in Dr O's office, she said my FFS is deductible without question since the surgery was medically necessary.

If I am challenged, i will go to court, no problem getting an attorney pro-bono.

[straycat]

I have been considering this issue myself (SRS later this year) and intend to claim the deduction for SRS only (not FFS) next year.  I would also like to use the medical expense exception to avoid the penalty for early withdrawl from a retirement account.  One thing I wonder about is whether a recent  gender appropriate name change in the few years prior to a large medical deduction may also be a "red flag".  I changed my name last year and registered the name with the Social Security Administration and my employer.  Social Security also has a sex designation with your records and they told me I could not change that until after providing proof of SRS (what they actually said was I had to have my birth certificate changed but proof of surgery may work since all states will not change the birth certificate) When I filed income taxes this year, I used my new name only.  However I was very annoyed to find that the refund checks from both federal and state were issued payable in my previous name even though that name was nowhere in the returns I filed.  I was surprised no one mentioned here the fairly recent case in which a woman claimed her SRS as a deduction initially I think in 2002.  It was denied by a tax examiner after an audit, then won on appeal in 2004 with help from GLAD.  In 2005 after urging from the Traditional Values Coalition the IRS reversed that decision and again denied her deduction.  It is apparently now being appealed in Tax Court with the help of GLAD.

GLAD Wins Tax Deduction for Sex Reassignment Surgery
http://hrc.org/Template.cfm?Section=Home&CONTENTID=24289&TEMPLATE=/ContentManagement/ContentDisplay.cfm

Traditional Values Coalition Calls Upon IRS Commissioner To Overturn Tax Deduction For 'Sex Change'
http://www.traditionalvalues.org/print.php?sid=2050

IRS disallows a woman's tax deduction for SRS - citing teachings in a Catholic religious journal as a basis for its decision
http://ai.eecs.umich.edu/people/conway/TS/Legal%20Issues/Taxes/IRS%20SRS%20Rulings.html

IRS Memo Says No Deduction for Gender Reassignment
http://www.webcpa.com/article.cfm?articleId=18762

GLAD has commenced litigation in the U.S. Tax Court to assert the medical necessity of sex reassignment surgery for Rhiannon O'Donnabhain
http://www.glad.org/GLAD_Cases/CivilRightsProject.html#transgender