Can You Claim Pregnancy Expenses on Taxes?

Certain medical expenses, including those related to pregnancy and childbirth, are deductible on federal income taxes. These deductions fall under the broader category of medical expense deductions, which can help reduce a taxpayer’s taxable income. Understanding the criteria for claiming these expenses is important for maximizing tax benefits.

Understanding Qualified Medical Expenses for Pregnancy

The Internal Revenue Service (IRS) defines “qualified medical expenses” as costs primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This definition is detailed in IRS Publication 502, “Medical and Dental Expenses.” Many pregnancy-related costs align with these guidelines, making them potentially deductible.

Qualified medical expenses related to pregnancy and childbirth include prenatal and postnatal care, such as doctor visits, diagnostic tests, and hospital costs for labor and delivery. Prescription medications directly related to pregnancy, as well as fertility treatments like in vitro fertilization (IVF), are also included. Counseling related to pregnancy or childbirth and medically necessary acupuncture or chiropractic care also qualify.

Certain expenses are not included as qualified medical expenses. These include non-medical baby supplies like diapers, formula, or baby clothes. Maternity clothes, routine childcare costs, and general health supplements are also not deductible unless prescribed to treat a specific medical condition.

Meeting the Adjusted Gross Income Threshold

Adjusted Gross Income (AGI) represents a taxpayer’s gross income minus specific deductions, such as certain retirement contributions or student loan interest. This figure determines the deductibility of medical expenses. For most taxpayers, only the amount of qualified medical expenses that exceeds 7.5% of their AGI can be deducted.

If a taxpayer’s AGI is $50,000, they can only deduct medical expenses that surpass $3,750 (7.5% of $50,000). For instance, if total qualified medical expenses are $6,000, only $2,250 ($6,000 – $3,750) would be potentially deductible.

The AGI threshold applies regardless of the type of medical expense, including those incurred during pregnancy. Taxpayers must calculate their AGI and total qualified medical expenses to determine if they meet this minimum. This calculation is a preparatory step before claiming any deduction on a tax return.

The Process of Itemizing Deductions

To claim medical expense deductions, including those related to pregnancy, taxpayers must choose to itemize their deductions rather than taking the standard deduction. The standard deduction is a fixed dollar amount that reduces taxable income, and its amount varies based on filing status. For the 2024 tax year, for example, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly.

Itemized deductions are reported on Schedule A (Form 1040), “Itemized Deductions.” This form lists various categories of deductible expenses, including medical and dental expenses, state and local taxes, and mortgage interest. The total qualified medical expenses, after applying the AGI threshold discussed previously, are entered on Schedule A.

Taxpayers should only itemize if their total itemized deductions exceed their applicable standard deduction amount. If the sum of all eligible itemized deductions is less than the standard deduction, taking the standard deduction results in a greater tax benefit. The Tax Cuts and Jobs Act of 2017 significantly increased standard deduction amounts, leading fewer taxpayers to itemize.

Essential Record Keeping

Maintaining thorough and accurate records for all claimed medical expenses is important for tax purposes. These records substantiate the deductions in case of an IRS inquiry or audit. Without proper documentation, claimed deductions may be disallowed, potentially leading to additional tax liabilities, penalties, and interest.

Specific types of documentation to retain include receipts for services rendered, such as doctor’s visits and hospital bills. Records of payments made, like credit card statements or canceled checks, are also important. Explanation of Benefits (EOB) statements from insurance companies and prescriptions for medications or treatments provide proof of medical necessity and actual costs.

Tax records, including those for medical expenses, should be kept for at least three years from the date the tax return was filed or the due date, whichever is later. Records may be kept for up to seven years. Organizing these documents, whether physically or digitally, ensures easy retrieval if needed.