Editor’s Note: This post was originally published in January 2014 and has been updated for accuracy and comprehensiveness.

Having a baby is an exciting life event, but it also comes with significant expenses—many of which start during pregnancy. The good news is that certain pregnancy-related medical costs may be tax-deductible, helping you ease the financial burden. However, not all expenses qualify. Understanding which maternity costs you can and can’t deduct will help you keep better records and maximize your potential tax savings.

Understanding Pregnancy-Related Tax Deductions: What You Can and Can’t Claim

Deductible Pregnancy Expenses

As a general rule, any medically necessary expenses related to your pregnancy can be deducted—provided you pay for them out of pocket. If your insurance covers a portion of these expenses, you can only deduct the amount you personally paid.

Eligible deductible expenses include:

• Prenatal and postpartum doctor visits
• Labor and delivery costs
• Hospital stays
• Prescription medications related to pregnancy
• Medical tests (e.g., ultrasounds, bloodwork)
• Breast pumps and lactation supplies
• Childbirth classes, if they are medically recommended
• Transportation costs for medical care, such as ambulance fees

Important note: Only ultrasounds prescribed by your doctor qualify as deductible medical expenses. Non-medical, elective 3D or 4D ultrasounds for keepsake purposes are not eligible for deductions.

Non-Deductible Pregnancy Expenses

While many pregnancy-related costs qualify for tax deductions, others do not. Here are some common expenses that don’t make the cut:

• Maternity clothing: Even though maternity clothes are essential, they are considered personal expenses and are not deductible. The only possible exception is if your employer requires a specific uniform and does not reimburse you.
• Mother’s helpers or babysitters: While child care expenses can be deductible in certain cases, hiring a mother’s helper for personal convenience does not qualify. However, if your doctor orders bed rest and prescribes in-home assistance, you may be able to deduct that cost.
• Home birth supplies: Some costs associated with a home birth may not qualify unless they are medically prescribed.

How to Claim Pregnancy Expenses on Your Taxes

To deduct pregnancy-related expenses, you’ll need to itemize your deductions on Schedule A of your tax return. Keep in mind that medical expenses are only deductible once they exceed 7.5% of your adjusted gross income (AGI).

Example Calculation:

If your AGI is $50,000:

• Your medical expense threshold is $3,750 (50,000 x 7.5%).
• If you paid $6,000 in qualified pregnancy-related medical expenses, you can deduct $2,250 ($6,000 - $3,750).

To ensure you receive the maximum deduction, keep detailed records of your medical bills, receipts, and any payments made out of pocket.

Maximizing Your Savings Beyond Deductions

Beyond traditional deductions, consider utilizing Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs). These accounts allow you to pay for qualified medical expenses with pre-tax dollars, reducing your overall taxable income.

HSA vs. FSA: Key Differences

• Eligibility: HSAs are available only to individuals with a high-deductible health plan (HDHP), while FSAs are offered by employers and can be used alongside various health plans.
• Contribution Limits & Rollover: HSA funds roll over indefinitely, while FSA funds often have a use-it-or-lose-it rule (some employers allow a small rollover or grace period).
• Ownership & Portability: HSAs are owned by the individual and stay with you even if you change jobs. FSAs are employer-owned, and funds are usually forfeited when you leave.
• Tax Benefits: Both offer pre-tax contributions and tax-free withdrawals for qualified medical expenses, but HSAs also allow tax-free investment growth and withdrawals in retirement (after age 65).

Final Thoughts

Pregnancy is a joyful but costly journey. By understanding which expenses qualify for tax deductions, you can make informed financial decisions and reduce your tax liability. You can also be more prepared by saving receipts and referrals for qualifying pregnancy-related services and supplies. If you’re unsure about which deductions apply to you, consult a tax professional to ensure you’re maximizing your potential savings.

Looking for more tax-saving tips? Stay informed by checking IRS guidelines or speaking with a tax expert.