When the IRS recently announced new tax brackets, standard deductions and other important items for the 2025 tax season, it also issued Notice 2024-71. It says condoms for a taxpayer, spouse or dependent now qualify as a medical expense and can be deducted if you itemize and your medical expenses exceed 7.5% of adjusted gross income (AGI) for the year. AGI is total income minus deductions, or “adjustments” to income that you are eligible to take.
Previously, condoms as an itemized tax deduction were on a case-by-case basis. “You had to prove you had a medical reason such as not spreading a STD (sexually transmitted disease) rather than just as a contraceptive,” said Richard Pon, a certified public accountant in Northern California.
Condoms have been reimbursable for years through a pre-tax health savings account (HSA) or flexible savings account (FSA), which cover over-the-counter medications that aren’t generally tax deductible as an itemized deduction.
Condoms are only one of many medical-related expenses that qualify for a tax deduction, Pon said. Some listed below aren’t new but may be little known, he said.
More tax-deductible medical-related expenses
- DNA collection kits if used to obtain health care information, not ancestry information. This is suggested in a 2019 private letter ruling (PLR) for a taxpayer asking the IRS for clarification on the tax treatment for genetic testing. Technically, PLRs apply only to the taxpayer requesting clarification, but the ruling indicates the IRS’s thinking on the matter and how it might treat similar situations, experts said. The IRS said the “taxpayer must allocate the price paid for the DNA collection kit and health services between the medical and non-medical items and services to determine what is medical care” and may deduct that portion of the expense.
- Breast pumps and lactation supplies, such as pump accessories, nursing pads, milk storage bags and nipple cream and ointments.
- Smoking cessation programs and nicotine withdrawal drugs, but only if they’re doctor-prescribed. Over-the-counter nicotine patches are not tax deductible.
- Volunteer-related expenses. The hourly rate for time spent helping can’t be deducted, but unreimbursed items volunteers spent money on can be as noncash charitable contributions. Any deduction of $250 or more requires documentation and possibly, acknowledgment from the qualified charity. “Volunteer medical professionals may have scrubs, uniforms and personal protective equipment,” Pon said. “Sometimes they have volunteer travel, such as Doctors Without Borders. Sometimes they have medical equipment they pay for. Volunteer first responders may also have uniforms and safety gear that are unreimbursed costs.”
What if I don’t itemize?
People who don’t itemize their tax returns can still benefit by using a health savings account or flexible spending account to reimburse themselves for medical expenses, Pon said.
FSA and HSA contributions aren’t taxed. For 2025, the HSA contribution limit for an individual is $4,300 and $8,550 for a family with a high-deductible health plan. The FSA contribution limit is $3,300.
“The new joint standard deduction is $30,000, so it’s hard for a lot of people to itemize,” he said. And “even if you itemize, most people do not deduct medical expenses since it must exceed 7.5% of your adjusted gross income.”
FSAs and HSAs also cover over-the-counter medications or drugs like insulin that aren’t allowed as itemized deductions. “So, this is one way to get a tax deduction for over-the-counter medicine such as Tylenol,” Pon said.
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What are some other advantages of FSAs and HSAs?
- FSA reimbursement eligibility occurs on the first day of your employment. If you have been reimbursed more than you have contributed, you do not have to repay the money when you leave the job as long as it was used on eligible expenses, Pon said.
For example, he said: Fred elects to contribute in 2025 $600, or $50 a month, to his FSA. In January, Fred buys glasses for $500 and receives reimbursement from his FSA. Fred leaves his job in February when his employer had deducted only $100 in FSA contributions. Fred is not responsible for repaying the $400 excess from the FSA.
“Therefore, from a financial perspective, it’s best to use as much of your FSA early in the year as you do not have to repay excess FSA funds if you later leave during the year,” Pon said.
- HSAs can also be used as investment vehicles.HSA money can be invested and grow tax-free over time. Plus, if you find yourself in a financial bind, you can withdraw money tax-free against any receipts for qualified expenses you paid for out of pocket while your HSA was invested and growing. “There’s no timeline of when an HSA account holder has to reimburse themselves,” said Ryan Losi, executive vice president at CPA firm PIASCIK. “You can accumulate medical expenses, create a folder over 40 years and put in all the documents for them; meantime, pay out of pocket, then at 65 (years old) you can reimburse yourself, tax-free.”
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
- HSAs can also be used as investment vehicles.HSA money can be invested and grow tax-free over time. Plus, if you find yourself in a financial bind, you can withdraw money tax-free against any receipts for qualified expenses you paid for out of pocket while your HSA was invested and growing. “There’s no timeline of when an HSA account holder has to reimburse themselves,” said Ryan Losi, executive vice president at CPA firm PIASCIK. “You can accumulate medical expenses, create a folder over 40 years and put in all the documents for them; meantime, pay out of pocket, then at 65 (years old) you can reimburse yourself, tax-free.”
