Archive for February, 2011

Breast of Both Worlds

Thursday, February 17th, 2011

What’s better gang then mother’s milk for the kids?  Why getting tax breaks for the deal.  Don’t take my word for it.  Read below the recent IRS ruling:

Part IV – Items of General Interest

Lactation Expenses as Medical Expenses

Announcement 2011-14

The Internal Revenue Service has concluded that breast pumps and supplies that assist lactation are medical care under § 213(d) of the Internal Revenue Code because, like obstetric care, they are for the purpose of affecting a structure or function of the body of the lactating woman. Therefore, if the remaining requirements of § 213(a) are met (for example, the taxpayer’s total medical expenses exceed 7.5 percent of adjusted gross income), expenses paid for breast pumps and supplies that assist lactation are deductible medical expenses. Amounts reimbursed for these expenses under flexible spending arrangements, Archer medical savings accounts, health reimbursement arrangements, or health savings accounts are not income to the taxpayer.

The Service will revise Publication 502, Medical and Dental Expenses, to include this information.

ADDITIONAL INFORMATION

For additional information concerning this announcement, contact Amy S. Wei of the Office of Associate Chief Counsel (Income Tax and Accounting) at (202) 622-7900 (not a toll-free call).

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So now that you are pumped up over the deduction be sure that you put it on Schedule A and keep supporting documentation, okay?  Still have room for more clients if you have any tax or audit needs.

Hope you are having a great winter.

Kim Isaac Greenblatt

Breast of Both Worlds