Spinoff of flex account thread.....so what about taxes?

[ACsMom]

I'm in NC, a home birth illegal state, and am paying completely out of pocket for our midwife. So, can I add that as out of pocket medical expenses on my 09 tax return? With all the other medical expenses we've had this year, it would put us above the threshold of where you can start taking a deduction for it. I haven't asked my midwife about it yet - not sure what she gives as far as a receipt for payment.

[nashvillemidwife]

Technically, you can't claim tax deductions for illegal activities. However, if you were audited there's no way for the IRS to know that you willingly participated in something illegal; the midwife is the one who is breaking the law, not you. Maternity care expenses are normal tax deductions so even if you were audited I doubt it would garner a second glance.

[xixstar]

sure, I'd claim it. also, you're not doing anything illegal by having a homebirth. sure there is the splitting hairs over paying someone not licensed to attend births, but I wouldn't spend time worrying about that and would just get invoiced, pay, and claim the fee.

[thefreckledmama]

Couldn't you just claim it under "maternity expenses"? I always do my own taxes online, and it doesn't ever ask for provider info, just amount spent. The only issue that I could see possibly coming up is if you were audited, and as PP said, you weren't the one breaking the law by having a home birth.

[camprunner]

I used a midwife in the OP's area four years ago. She was insulted that I asked about claiming on my insurance, taxes, or flex. I understand where she is coming from. She is risking a lot to provide the service. I was a little disappointed that she seemed so offended by my asking though.

[ACsMom]

Camprunner, thanks for sharing your experience with your midwife - it never occurred to me that she might be insulted by a question like that - I might have really put my foot in it! But I guess I can understand. When I write her a check it's made out specifically to her, doesn't say what it's for, and she doesn't give me a receipt other than to mark what I paid in my chart. I think I'll consider what others said about marking it under maternity expenses on my taxes. Maybe I'll split it over two years, since my due date is in January anyway - that might make it even more innocuous-looking. Thanks for your replies, everyone!