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In a landmark decision, the IRS has announced its agreement with an historic court ruling that allows tax deductions for medical care related to gender transition.
The decision, announced Wednesday and officially called a "notice of acquiescence," relates to O'Donnabhain v. Commissioner, a case brought by Gay & Lesbian Advocates & Defenders on behalf of a transgender woman who was denied the ability to take advantage of an existing federal income tax deduction for medical care costs because the IRS considered her transition-related care medically unnecessary.
In 2010, the U.S. Tax Court overturned IRS policy disallowing tax deductions for medical care related to gender transition, a policy the IRS defended by citing 2005 guidance from the IRS's Chief Counsel.
Wednesday's announcement means that the IRS now agrees with the Tax Court's 2010 ruling.
Read more here.
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