Earlier
this
month,
the
IRS
released
Notice
2024-71
which
provided
a
safe
harbor
to
claim
an
income
tax
deduction
for
the
purchase
of
condoms.
Similarly,
the
IRS
also
issued
Notice
2024-75
which
stated
that
over-the-counter
oral
contraceptives
can
be
provided
by
a
high-deductible
health
plan
without
the
payment
of
a
deductible.
But
these
contraceptives
are
not
deductible
as
a
medical
expense.
The
treasury
regulations
state
that
in
order
to
claim
an
income-tax
deduction
for
medical
expenses,
the
payment
must
be
made
primarily
for
the
prevention
or
alleviation
of
a
physical
or
mental
defect
or
illness.
But
they
are
not
allowed
for
expenses
that
are
merely
beneficial
to
an
individual’s
general
health,
such
as
monthly
gym
membership
fees.
Before
the
release
of
this
notice,
the
IRS
interpretation
of
this
rule
as
applied
to
condoms
was
likely
to
the
taxpayer’s
displeasure.
It
is
known
that
proper
condom
use
minimizes
the
chances
of
transmitting
sexually
transmitted
diseases
(STDs).
But
most
people
purchase
condoms
primarily
for
contraceptive
purposes.
Pregnancy
—
even
the
unwanted
kind
—
is
not
considered
a
medical
illness.
The
notice
does
not
make
a
distinction
for
gender.
In
other
words,
a
woman
can
purchase
condoms
designed
for
men
or
female
condoms
and
still
claim
the
deduction.
This
safe
harbor
notice
provides
favorable
guidance
for
the
taxpayer
by
presuming
that
all
condom
purchases
are
made
for
the
prevention
of
disease,
thus
qualifying
it
for
an
income-tax
deduction.
The
medical
deduction
can
be
claimed
in
a
number
of
ways.
The
first
way
is
to
claim
the
purchase
as
an
itemized
deduction.
In
order
to
do
so,
the
total
medical
expenses
for
the
taxpayer,
his
or
her
spouse,
and
dependents
must
exceed
7.5%
of
the
taxpayer’s
adjusted
gross
income.
Also,
the
total
itemized
expenses
must
exceed
the
standard
deduction
which
is
$14,600
in
2024.
These
spending
requirements
coupled
to
the
relatively
low
cost
of
condoms
can
make
it
difficult
for
some
taxpayers
to
claim
the
deduction.
The
other
way
to
deduct
the
cost
of
condom
purchases
is
through
a
Health
Savings
Account
(HSA),
a
health
Flexible
Spending
Arrangement
(FSA)
plan,
or
a
Health
Reimbursement
Arrangement
(HRA).
While
the
details
vary,
these
plans
generally
allow
pre-tax
money
to
be
used
for
medical
expenses.
FSAs
and
HRAs
are
generally
provided
by
the
taxpayer’s
employer.
HSAs
can
be
set
up
by
the
taxpayers
individually
although
they
must
have
a
high-deductible
health
plan
to
qualify.
What
prompted
the
IRS
to
issue
these
prophylactic
announcements
is
unknown.
Reported
cases
of
STDs
have
been
flat
in
recent
years
(although
syphilis
cases
have
increased).
Also,
teen
pregnancies
reached
historic
lows
in
2022.
Perhaps
this
will
encourage
younger
people
to
start
tax-advantaged
HSAs
or
participate
in
their
employers’
FSA
and
HRA
plans.
The
tax
savings
can
be
used
to
go
on
a
date
at
a
nicer
restaurant
or
buy
more
condoms.
Steven
Chung
is
a
tax
attorney
in
Los
Angeles,
California.
He
helps
people
with
basic
tax
planning
and
resolve
tax
disputes.
He
is
also
sympathetic
to
people
with
large
student
loans.
He
can
be
reached
via
email
at
[email protected].
Or
you
can
connect
with
him
on
Twitter
(@stevenchung)
and
connect
with
him
on LinkedIn.