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Thursday, October 8, 2026

Abortion Travel Reimbursements Raise Tax Issues for Employers - Bloomberg Law

On June 24, 2022, the US Supreme Court held in Dobbs v. Jackson Women’s Health Organization that there is no constitutional right to abortion. While Dobbs doesntprohibit abortions, it gives each state the right to determine its own laws related to abortion services. Since the decision, numerous states have implemented laws that severely restrict abortion services through civil and criminal penalties.

In light of Dobbs, employers have been evaluating whether to pay for travel expenses incurred by employees and dependents relating to medical services that are not available within a certain distance from their residence. The provision of these travel benefits raises unique tax issues that must be considered in designing any type of travel expense program.

Whether the employer’s payment or reimbursement of such travel expenses will be considered taxable will depend on whether the travel meets the definition of medical care under the Internal Revenue Code. As defined by the IRC, medical care includes travel that is essential for obtaining legal medical services from a doctor in a licensed hospital or its equivalent. Travel...



Read Full Story: https://news.bloomberglaw.com/employee-benefits/abortion-travel-reimbursement...