Summary

Excludes payments for abortions from the federal itemized medical expense deduction under the Internal Revenue Code, while allowing deductions only when the abortion is necessary to prevent the woman’s death from a certified physical disorder, injury, or illness, or when the abortion results from rape or incest. The change applies to taxable years beginning after the date of enactment. The immediate effect is to reduce or eliminate the federal tax deduction for most abortion-related expenses for taxpayers who itemize, which can increase the after-tax cost of obtaining an abortion and require updated IRS guidance and taxpayer compliance efforts.

Key Points

• Removes abortion payments from deductible medical expenses under federal tax law.
• Maintains deductibility only when abortion is necessary to prevent a woman’s death or results from rape or incest.
• Applies to taxable years beginning after enactment.
• Affects taxpayers who itemize medical deductions, potentially increasing after-tax costs for abortions.
• Does not create new spending, programs, or criminal penalties—it is a tax law change.
• Likely requires IRS guidance on documentation and verification of the two exceptions.
• Impact varies: those who do not itemize (many low-income taxpayers) may see little direct tax effect.
• May increase administrative burdens for tax preparers, health providers, and insurers.

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