IRS Reaffirms Narrow View of Permissible Medical Expenses for Section 213 Purposes, Jul 8, 2021

In a private letter ruling, the IRS recently refused to expand the availability of the IRC Section 213 medical expense deduction to include a deduction for medical costs incurred by same-sex couples attempting to have a child through surrogacy. The IRS denied a request to include expenses for egg retrieval, in vitro fertilization (IVF), the surrogate's childbirth expenses and medical insurance, legal fees, and other expenses related to the surrogacy. The IRS denied the deduction for these expenses because they were not incurred to affect the body of the taxpayer, a spouse, or dependent. The IRS distinguished this situation from one in which similar treatments would actually impact the taxpayer or a spouse's body. While a private letter ruling cannot be cited as precedent, it does provide insight into the IRS requirements for taxpayers attempting to deduct these and similar expenses. For more information on the medical expense deduction, see Q 8548.