Birth Control as a Medical Expense: Tax Deductions

Birth control as a medical expense: Tax deductions

According to the IRS, Publication 502, "medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners" (Publication 502, 2013, IRS). Birth control pills would qualify as an expense that could be deducted from a tax return, as listed under a treatment that affects a 'part or function' of the body. The IRS even specifically states "you can include in medical expenses the amount you pay for birth control pills prescribed by a doctor" (Publication 502, 2013, IRS). If filing jointly, this also includes medical expenses of a spouse so a husband could deduct his wife's birth control pills from the couple's joint tax return.

However, regarding all medical expenses, the deduction is only applicable if it meets specific standards. "Generally, you can deduct on Schedule a (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI [Adjusted Gross Income]" although "either you or your spouse was born before January 2, 1949, you can deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI" (Publication 502, 2013, IRS). In other words, someone with an income of $40,000 could not deduct any medical expenses if such expenses only totaled $2,500 because the total would be less than $4,000 unless she or her spouse were born before 1949. All of this will change in 2017, however. "Beginning January 1, 2017 the threshold will be 10% for all taxpayers" (Patton 2014).

Only birth control pills as prescribed by a doctor are deductible -- not over-the-counter birth control devices. "Also not deductible are vitamins and supplements, gym membership, dance lessons and swimming lessons even if recommended by your physician, prescriptions for controlled substances (marijuana, laetrile, etc. that violate federal law) or prescription medicines from foreign countries, hair transplants and teeth whitening" (Lee 2011). In other words, nonprescription activities which promote health are not covered. Thus, birth control pills, birth control injections, diaphragms, IUDs, or any other device which must be prescribed or inserted by a physician would qualify for the deduction. Condoms and spermicide purchased over the counter would not. Regarding medical expenses, "the focus is on legal medical drugs and procedures for non-cosmetic purposes that would require the services of a physician. By definition, that would include an IUD, as well as Norplant and similar implantables. It also includes the costs of sterilization for women and vasectomies for men" (Erb 2013).

When deducting the birth control, it is also important to itemize the expense. "You must itemize your deductions (i.e.; Schedule a) in order to qualify. You cannot use the standard deduction and claim medical and dental expenses" (Patton 2014). It is also essential that these medical expenses are tabulated accurately. "You must have paid medical expenses during the calendar year. If you paid by check, the date you mailed or delivered the check is usually the qualifying date of payment" (Patton 2014). In other words, what is reimbursed is what the patient pays, not the actual cost, if some of the expense was covered by insurance. If the birth control pill is covered by insurance, it is not deductible. If only part of the birth control is covered by insurance, you can only deduct the amount which is not covered.