Can transgender women claim breast augmentation as an out of pocket expense if it was necessary?

[CarolynM]

Yes, according the the US Tax Court this is a valid medical deduction. 

Here is the link for the case law: O'Donnabhain Decision

For more information about medical deductions for transitioning, follow this link:

Transgender Medical Expenses

Bear in mind medical deductions must exceed 7.5% of your AGI before they can reduce your taxes.