The decision by the Supreme Court of The United States (SCOTUS) to overturn the Roe v Wade abortion rights case could impact your taxes if you or a dependent seeks an abortion.
Basically the SCOTUS has ruled that individual States can now prohibit abortions. It is expected that nearly half of the States will now ban abortions.
So how does this impact taxes? If you or a dependent need to travel to another State to obtain an abortion those travel expenses can be tax deductible.
You can choose to deduct your actual out of pocket expenses (keep your actual receipts) or you can deduct your mileage when you drive (keep a mileage log).
On July 1st, 2022 the mileage deduction increased by 4-cents per mile to account for higher gasoline prices and higher automobile maintenance costs.
The new rate for deductible medical expenses will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022.
As soon as the Supreme Court announced its decision some employers announced that their health insurance plans would cover costs for traveling to another State for an abortion. In that case, there is no deduction for reimbursed medical expenses.