A Tax Deduction for Breastfeeding Supplies

Heidi Murkoff @ What to Expect writes: Question:  

"A friend just told me that my breast pump is tax deductible. Is this true? Are there other tax deductions for newborns?"

Believe it or not, it’s time to show the Internal Revenue Service some love. A recent rule change means nursing mamas can now thank the IRS for doing its part to keep their precious babies healthier and save the family some cash by putting breast pumps on the list of tax-deductible items. The 2010 decision came after years of pressure from the American Academy of Pediatrics and other breastfeeding advocates to define breast pumps and other breastfeeding supplies as medical devices — the same standard that applies to other health-related gear like eyeglasses, diabetes monitors, and hearing aids. The reason:Breastfeeding provides reams of health benefits for baby (fewer infections, reduced risk of asthma and obesity, to name a few) and mom (lower cancer and type 2 diabetes risks).

Before 2010, the IRS lumped pumps in with other nondeductible “feeding devices” like blenders and dishware. By making breast pumps tax deductible, new families can offset some of the cost, which can run as much as $500 to $1,000 a year once you factor in the pump and all its accessories. And the breast pump tax deduction is the same whether you buy a pump or rent one. For some moms, this tax break may be even more incentive to start breastfeeding — and to continue nursing if they return to work.

So how can you take advantage of the new tax deduction for breastfeeding? Here’s the deal:

Tap into pre-tax dollars. If you work, the easiest way to save is to set aside money in your flexible spending account (FSA) to cover your pump and all the extra breastfeeding supplies — pump attachments, nipple cream, bottles and storage bags, pads, and the like. The IRS doesn’t provide a specific list of approved items beyond the pump itself, but if the product was used for a medical reason (e.g., cream on your cracked nipples), it will likely qualify as a tax-deductible item. Don’t have an FSA? Submit the expenses through your partner’s plan. One thing to be aware of: Not every FSA plan covers every IRS-approved item (for the complete list of medical tax deductions, visit irs.gov/publications/p502). Plus, your company can choose to limit the number of eligible deductions, so always check with your benefits department first if you’re unsure.

Itemize your expenses. If neither you nor your partner has an FSA, you may still be able to take advantage of the tax deduction for breastfeeding supplies if your total medical expenses for the year exceed 7.5% of your income. If your pregnancy costs were particularly high this past year, it may be worth your while (or your partner’s) to fill out the longer tax form in which each medical expense is accounted for — instead of filling out the standard tax form.

Take advantage of other tax-deductible items. As new parents, you’re now eligible for a whole host of family-related tax benefits. There’s the child-tax credit, which provides an extra $1,000 deduction for each child under the age of 17. You may also qualify for the dependent-care credit that pays for child care, after-school care, and even day camp so that parents can work or go to school. Need help figuring out what you can claim? Go to the IRS site, or talk to someone in your company’s benefits department or an accountant. Even if you’re able to use just one of these deductions, you’ll probably see a drop in your tax bill this year, which is great news for any family!