Electrolysis deductible from taxes in US as a medical expense?

[suzifrommd]

According to IRS publication 502 (found at http://www.irs.gov/publications/p502/ar02.html#en_US_publink1000179043):

Cosmetic Surgery

Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. This includes 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. You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction.

You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.

So the obvious question: Is being Trans considered "a congenital abnormality" by the IRS?

Has anyone ever looked into this?

[Rita]

It could be argued, and you might very well win but remember in order to claim medical expenses it must be at least 7.5% of your AGI between the sum of every qualified medical expense.

I think the best thing to do would be to ask if gender dysphoria is cogenital to be sure.  And if and only if you were disagnosed with it. 

But not being trans itself.

[suzifrommd]

It could be argued, and you might very well win but remember in order to claim medical expenses it must be at least 7.5% of your AGI between the sum of every qualified medical expense.

Not true in my case. I have something called a medical FSA, where I contribute money before taxes that can be used for anything they consider a medical expense.

[Mindy]

Yes it should be covered and this issue was settled in Tax Court if you were diagnosed with GID.

[Rita]

Not true in my case. I have something called a medical FSA, where I contribute money before taxes that can be used for anything they consider a medical expense.

http://www.irs.gov/publications/p502/ar02.html#en_US_publink1000179049

Flexible Spending Account

You cannot include in medical expenses amounts for which you are fully reimbursed by your flexible spending account if you contribute a part of your income on a pre-tax basis to pay for the qualified benefit.

So the question is, did you use your FSA for electrolysis?  According to this publication and what you told me a simple analysis would say no if you did.

Otherwise yea, the above statement still holds true~  If you have a doctors note proving the condition as stated originally than I doubt you would even have to worry about tax court.  If they question you about your deductions they only require you to send them proof with tax court being a last resort. 

[Mindy]

I just went through 2 years of audits and I had paid with an hsa and the auditor allowed it.

[Rita]

I just went through 2 years of audits and I had paid with an hsa and the auditor allowed it.

The IRS is very leniant, so if you pull up a good argument not based off insanity I can see this happening.  But it doesn't hurt to gather everything beforehand.