Today TaxMama hears from Angela in the TaxQuips Forum, who did something clever “When my children were born I paid for a service to have their umbilical cord blood stored (stem cells). We pay a yearly storage fee (about $200), and have not been able to use our Flexible Savings Account for it in the past. We wonder, would it be deductible since we have enough medical expenses to have a deduction already?”
It says: “Banking cord blood to treat an existing or imminently probable disease may qualify as deductible medical expenses. However, banking cord blood as a precaution to treat a disease that might possibly develop in the future does not satisfy the existing legal standard that at a minimum a disease must be imminently probable.”
Mike says that Congress hasn’t passed the referenced bill, and until and unless it does this might be all the guidance we get.
What you have done is eminently sensible, and perhaps more people should do that for any potential problems. But Congress has not yet gained the wisdom to encourage citizens to take sensible, preventive actions. Pity. One day, they will recognize the value in what people like you have done!
And remember, you can find answers to all kinds of questions about medical expenses and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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