Gender reassignment surgery (SRS) is tax-deductible, US court finds



Posted: Friday, February 05, 2010

by Susan Gamsky
SRS Transformations

The Courts' decision could have wide implications for transgender people.

An American transsexual who was audited after deducting the cost of sex reassignment surgery when filing her taxes won an appeal Feb. 2, 2010 after asserting the operation was a legitimate medical expense. The US Tax Court ruled that the Massachusetts woman should be allowed to deduct the costs of her sex-change operation.

Tax officials had said the SRS patients' operation was not eligible for the deduction because it was a purely "cosmetic" procedure. On Feb. 2, the tax court rejected that claim saying, "The evidence amply supports the conclusions that petitioner suffered from severe gender-identity disorder (GID), that GID is a well-recognized and serious mental disorder, and that hormone therapy and sex reassignment surgery are considered appropriate and effective treatments for GID."

Lawyers from advocacy group Gay and Lesbian Advocates and Defenders (GLAD) had agreed to take on her case and successfully argued that she entitled to the deduction take advantage of IRS rules allowing the deduction of some medical costs, like chemotherapy, if the individual's health insurance does not fully cover the procedure.

According the Internal Revenue Service (IRS) Publication 502, a deduction is allowed for "expenses primarily paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. "

While the IRS doesn't say anything about air travel for those having SRS abroad it does say "you may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses."

In view of the growing numbers of patients entereing the medical tourism market it is interesting that the IRS also says you may nclude in medical expenses the incidental cost of meals and lodging charged by a hospital or similar institution if your principal reason for being there is to receive medical care.

If you are thinking about pursuing a deduction remember that the amount may include only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income.

Susan Gamsky is not an attorney, accountant or tax advisor. Any tax issue be thoroughly researched using the IRS.org website, a qualified tax advisor or accountant or a tax lawyer.

Susan writes for www.SRSTransformations.com, a Florida company who provides free, confidential consults and assists in the coordination of surgical services for those considering affordable Gender Reassignment Surgery or SRS abroad.

For a free consult or more information contact SRSTransformations.com Email: info@srstransformations.com or Call SRS Transformations.com at (407) 843-2500 in Orlando, Florida.

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