Updated Tax Deduction Guidelines for Medical Expenses
For those who practice safe sex, there’s some encouraging news from the IRS: condoms are now eligible for an itemized deduction. In a recent update, which also included adjustments to tax brackets and standard deductions for the 2025 tax season, the IRS released Notice 2024-71. This notice explains that expenses for condoms used by a taxpayer, their spouse, or dependents can now be deducted as a medical expense. This deduction is applicable if you itemize deductions and your total medical expenses exceed 7.5% of your adjusted gross income (AGI). The AGI is your total income minus any eligible deductions or adjustments.
In the past, the eligibility of condoms for a tax deduction was evaluated on an individual basis. “You needed to demonstrate a medical necessity, such as preventing the spread of an STD, rather than mere birth control purposes,” explained Richard Pon, a certified public accountant based in Northern California.
For years, condoms have been eligible for reimbursement through pre-tax Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), which allow for the coverage of over-the-counter medications that aren’t typically deductible as itemized deductions.
According to Pon, condoms are just one of several medical-related expenses that can be deducted on taxes. Some of these expenses, listed below, are not widely known despite not being new.
Additional Deductible Medical-Related Expenses
- DNA Testing Kits are deductible if they are used for obtaining healthcare information rather than for ancestry purposes, as indicated in a 2019 private letter ruling (PLR). This ruling, while specifically applicable only to the individual requester, suggests how the IRS might handle similar cases, according to experts.
- Breast Pumps and Lactation Supplies, including accessories, nursing pads, milk storage bags, and various creams and ointments are also deductible.
- Smoking Cessation Programs and Nicotine Withdrawal Drugs are deductible but only if they are prescribed by a doctor. Over-the-counter nicotine patches do not qualify.
- Volunteer-Related Expenses are deductible for unreimbursed purchases made by volunteers. Although the value of time spent volunteering isn’t deductible, the costs of items like uniforms, personal protective equipment, and sometimes travel or medical equipment necessary for volunteering can be deducted. This applies especially to volunteer medical professionals and first responders.
Options for Non-Itemizers
Individuals who do not itemize their deductions can still take advantage of tax benefits through Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), according to Pon. These accounts provide an avenue to reimburse yourself for medical expenses without being taxed on the contributions. For the year 2025, the HSA contribution limits are $4,300 for individuals and $8,550 for families enrolled in high-deductible health plans. The FSA contribution limit stands at $3,300.
“With the new joint standard deduction set at $30,000, it becomes challenging for many to itemize,” Pon mentioned. He also pointed out that most people do not claim medical deductions because these must surpass 7.5% of their adjusted gross income.
Both FSAs and HSAs cover over-the-counter medications, like insulin, which are not eligible for itemized deductions. This provides another method to obtain a tax break for such medications, Pon added.
Benefits of FSAs and HSAs Beyond Tax Deductions
- Immediate FSA Reimbursement is a significant benefit. For example, if an employee named Fred contributes $600 annually ($50 monthly) to his FSA and spends $500 on glasses in January, he can get reimbursed immediately. Even if Fred leaves the job in February after contributing only $100, he isn’t required to repay the $400 balance.
- Investment Opportunities with HSAs. Funds in an HSA can be invested and grow tax-free. Additionally, there’s flexibility in reimbursement for qualified medical expenses paid out-of-pocket, allowing the HSA to continue growing. “There’s no set timeframe for when you need to reimburse yourself,” noted Ryan Losi, executive vice president at CPA firm PIASCIK. This allows for potential tax-free withdrawals against those expenses decades later.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
