I think that only applies if you already itemize your deductions and take medical expenses as part of those itemized deductions.
The amount of taxes you owe is based on an adjusted income, which is your actual income minus any deductions. You can opt to take the "standard deduction," which I think is about $4,500 for someone filing single with one dependent, or, if you think it will total more than that, you can itemize your deductions -- which is to say "well, I have mortgage interest of X that I paid this year, I had medical expenses of Y, and I paid Z in property taxes, so I'm deducting X+Y+Z." I'm oversimplifying for the purpose of explanation here.
Basically, this article seems to indicate that for the 2010 tax year (filing next year) you will be able to deduct trans-related surgeries as medical expenses whereas previously you might not have been able to do that.
Right! And it means you should itemize instead of taking the standard, because it will be more the $4500. I did this, even though it wasn't technically legal yet. whoops!
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The amount of taxes you owe is based on an adjusted income, which is your actual income minus any deductions. You can opt to take the "standard deduction," which I think is about $4,500 for someone filing single with one dependent, or, if you think it will total more than that, you can itemize your deductions -- which is to say "well, I have mortgage interest of X that I paid this year, I had medical expenses of Y, and I paid Z in property taxes, so I'm deducting X+Y+Z." I'm oversimplifying for the purpose of explanation here.
Basically, this article seems to indicate that for the 2010 tax year (filing next year) you will be able to deduct trans-related surgeries as medical expenses whereas previously you might not have been able to do that.
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And it means you should itemize instead of taking the standard, because it will be more the $4500.
I did this, even though it wasn't technically legal yet. whoops!
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