By the time my first child was born three years ago, the out-of-pocket expenses we had piled up considerably. And after that, they just kept on growing at an alarming rate. Not that we were spending extravagantly, having opulent baby showers or buying pricey organic baby food. But still...when you add up all the basic necessities for your New Infant Starter Kit, it can be a pretty penny. And it turns out that you can be hit with items that are unexpectedly expensive. Case in point: a breast pump.
My wife and I were quite puzzled by the fact that a breast pump was neither a medical device covered by insurance companies nor a qualified tax deduction. The former didn't make sense because she had been using an infusion pump that delivered heparin, an anti-coagulant that was prescribed during pregnancy due to her earlier diagnosis of antiphospholipid syndrome (APS). As the device and drug were deemed medically necessary, our insurance company covered 80% of the rental fee on the pump and the drug prescriptions were very low-cost.
The lack of tax consideration for breast pumps was also odd to us. Yes, non-reimbursed medical expenses can be itemized as a general deduction on your IRS tax return. But medical expenses are not deductible until they exceed 7.5% of adjusted gross income. The breast pump cost us close to $300 initially, and the supplies needed came close to $700 by the time he reached his first year. So realistically, most families can incur this expense in the same year that other related costs are accumulating. In our case, the total amount of related spending we had by the time of our son's first birthday put us over the top for that standard deduction. The same probably applies for most new middle-class parents as well.
That's why some really good news went public under the radar last week: the IRS will now consider breast pumps to be a tax-deductible expense this filing year.
From the Washington Post:
The cost of breast pumps will now be considered tax-deductible medical expenses under a ruling issued by the Internal Revenue Service Thursday.
The ruling, long sought by advocates, means that women will be able to use money set aside in pretax spending accounts to buy the pumps and related equipment, which can cost several hundred dollars. For women without flexible spending accounts, the cost of pumps will be tax deductible if their total medical costs exceed 7.5 percent of adjusted gross income.
That last point will make it easier to include the pump cost for those who don't have a health spending account or FSA. On a side note, if your company does offer an FSA and you haven't enrolled, do it now.
Considering the health benefits of breastfeeding for both mother and child during a child's first year, combined with the pathetic rate of infant mortality that the U.S. holds compared to other countries, even Joe Biden would call this another "big f*ckin' deal." A healthier alternative to the synthetic substitute of baby formula at infancy was what we sought for our son. And the American Academy of Pediatrics (AAP) had clearly established the benefits of breastfeeding awhile ago. But we were just blown away by the costs involved, and unfortunately this doesn't become known to most first-time parents of newborns until they add up all the hefty expenses and get over the sticker shock.
This should be very good news for those who seek more than just the standard Child Tax Credit (CTC) for their infant son or daughter, especially when every last dollar for a new family counts.