Deducting The Cost Of Birth Control

Kelly Phillips Erb The Tax Girl for Forbes writes: Taxpayer asks:  My health insurance doesn’t cover the cost of my birth control. I am trying to decide between pills and an IUD. Would either or both of them be tax deductible?

taxgirl says:

You can only deduct qualifying medical expenses for federal income tax purposes. Qualifying medical expenses include 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 visits to medical professionals as well as any medicine or drug which requires a prescription of a physician for legal use.

Under that definition, birth control pills are clearly deductible and are called out as deductible in IRS Publication 502. And while the IRS used to reference “contraceptive devices” in Publication 502, I can’t find that term anymore. Instead, 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.

Not all methods of birth control will qualify for the deduction. Condoms and sponges, for example, are not deductible since they are available not by prescription but over the counter. Non-prescription items – no matter how much you think they’re necessary – are considered “personal use items” and are not deductible.

Keep in mind that medical expenses are only deductible if you itemize your deductions on a Schedule A. For 2012, you can only deduct those qualifying expenses that exceed 7.5% of your adjusted gross income (line 37 of your form 1040).