SURROGACY EXPENSES

[DEO]

I will appreciate any answers.

TP and spouse went overseas early 2014 to have a surrogate mother bring forth their child.

Child was born in December 2014 and paper work is process to bring child to the US.

There were expenses incurred, travelling etc.

My question is what expenses can be deducted?

Since the child was born overseas and towards the end of 2014 and has no id as yet, can the TP claim the child since paper work is in progress.

Your valuable insight is appreciated.

 

Deo

 

 

[kcjenkins]

File an extension and wait for the SSN.  

 

Section 213(a) allows a taxpayer to deduct the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, the taxpayer's spouse, or the taxpayer's dependents (as defined in §152), to the extent the expenses exceed 7.5 percent of adjusted gross income. Section 152(a) defines a dependent as an individual of a kind listed in the section, for whom the taxpayer provided over half of the support for the taxable year, and who meets several other requirements.

 

A surrogate mother is not the taxpayer or the taxpayer's spouse, and typically is not the type of relative listed in § 152(a). The surrogate mother usually is neither a member of the taxpayer’s household for the entire taxable year, nor receives over half her support from the taxpayer for that year, and thus does not qualify as a non-relative dependent.  Nor is an unborn child a dependent. Cassman v. United States, 31 Fed. Cl. 121 (1994).  Thus, medical expenses paid for a surrogate mother and her unborn child generally would not qualify for deduction under §213(a).

[jklcpa]

WTG, KC, and thanks for posting that answer. I learned something new today from that.

[Terry D EA]

I read that same case earlier today and it is definitely good to know. The language really does make sense.