Tax season is officially among us, which means that all of the things Congress hashed out into the new GOP tax bill will come into play. The tax bill has been controversial, but in terms of what pregnant women can deduct from their taxes, it hasn’t changed too much, though there are some changes to take note of.
Overall, according to nonprofit news site Kaiser Health News, the GOP’s tax bill extended the medical expense deduction, which was set to expire this year, and it might be one of the only humane personal tax breaks included in the legislation. However, it’s only open to you and your family if you itemize your deductions, rather than claiming the standard deduction.
For itemizing your medical expenses to make financial sense, the “value of all your deductions” would need to exceed the standard deduction, according to CNBC. Under the new tax bill, the standard deduction is going to be double what it used to be until 2026. For a single person, that means your deductions would have to exceed $12,000. For married couples, the new threshold is $24,000 and if you’re a single parent and file as a head of household, it’s $18,000, as CNBC reported.
If you have medical expenses that will exceed that, then it might be worth itemizing any qualifying deductions, as long as they’re over 7.5 percent of your adjusted gross incomes, as CNBC reported, which is down from the 10 percent of previous years, according to the Internal Revenue Service.
If you’re going to itemize these deductions, you want to make sure you have all the receipts and are as precise as possible, just in case you ever get audited. If you’re really not sure what can be deducted or not, you might even benefit from getting a professional tax preparer to help you out and hopefully save you some money.
In the meantime, here are a few things pregnant women can deduct if they itemize, so go make sure you have all the receipts.
All Of Your Checkups
During your entire pregnancy, you’ll likely be getting a whole bunch of checkups to determine your and your baby’s health. They also can get pretty pricey depending on your insurance coverage and even if you have a co-pay, end up costing you a lot of cash out of pocket. According to Intuit Turbo Tax, you can deduct a portion of the cost of these visits.
The Money You Spend To Get There
You’re going to want to be careful when it comes to documenting this one, but any cost you incur, including parking, on your way to and from the doctor can be deducted as a medical expense, according to SheKnows.
Your Ultrasounds & Tests
These might not cost you anything with your insurance, but if you pay for any part of them out of pocket, according to Intuit Turbo Tax, tests that determine the development and health of the fetus, such as maternal serum tests, hCG testing, chorionic villus sampling, or amniocentesis, are deductible.
Any Baby Supplies, Like A Breast Pump
While you can’t deduct things like diapers or baby formula, since they’re just considered personal expenses (yea, that stinks), you can deduct any medication or prenatal vitamins you’re paying out of pocket for during your pregnancy, according to H&R Block. Breast pumps totally count. By the way, PocketSense notes that you can’t be taxed on any baby gifts or money you get from a baby shower, as long as someone doesn’t give you more than $14,000 or property for the baby.
Child Care & Education Costs
If you’re paying someone to take care of your kid or help out during your pregnancy, you might qualify for the child care tax credit. However, under the new tax bill, the Child and Dependent Care Credit may truly only benefit parents earning a higher income, according to NBC News, as the credit “scales up with income.”
Of course, when the baby finally comes, the cost of labor can also be deducted, as Turbo Tax notes, and don’t forget to change your filing status when the baby comes (just remember to get them a social security number if you’re going to claim them as dependents).
Having a new baby can certainly be a daunting endeavor, especially when you consider all of the finances. But being able to deduct some of these costs should alleviate some stress. Taxes can be tricky, so if you’re not sure about how to file yours, don’t hesitate to reach out to a professional who can hopefully help you save some money.