Are IVF costs eligible for tax deductions?

Anyone who has had in vitro fertilization knows the exorbitant expenses that come along with it — often going well beyond the estimates set at the start. While online sources typically cite around $15,000 per cycle, when factoring in IVF medications, additional procedures like ICSI or PGT-A, and fresh embryo transfer, expenses can easily exceed $20,000.

Now for the good news: If you paid a significant amount of your IVF expenses out of pocket last year, you may qualify for substantial tax deductions. Keep reading to learn how this works and how you may be able to enhance your tax return this year.

What is a tax deduction?

A tax deduction is an expense that can lower the amount of taxes a person or a corporation owes in a year. It gets subtracted from the total taxable income and therefore reduces the taxes payable to the government.You can read the official information on tax deductions from the IRS here.

Can I claim IVF expenses on my tax return?

You might be able to claim tax deductions on IVF expenses if you itemize deductions on your tax return. We use the term “might” because Congress can change the rules for deductions and credits annually.

To claim deductions, you should be aware of your adjusted gross income and expenses you paid for IVF treatment. You have the option to deduct qualified medical expenses, such as egg retrievals, which surpass 7.5% of your adjusted gross income. Ensure that you keep documentation of your expenses as proof.

IRS Letter: https://www.irs.gov/pub/irs-wd/0318017.pdf

The IRS states that eligible medical expenses may include:

• IVF procedure
• Surgeries (including any operation to reverse prior surgeries that prevented the person from having a child).
• Egg/Embryo storage
• Prescription medications, including birth control pills
• Acupuncture

You can take the IRS tax quiz to help determine your eligibility for tax deductions here.

To navigate this process, it’s best to seek guidance from a tax professional. They can help you maximize eligible deductions and optimize your tax benefits.

Another way to lower your out-of-pocket expenses for IVF treatment is to use a bank account with tax benefits like a health savings account (HSA) or flexible spending account (FSA).

Do all U.S. states offer tax deductions for IVF?

Certain states provide tax credits rather than tax deductions for fertility treatments. A tax credit is money that taxpayers can subtract directly from taxes owed. This differs from a tax deduction, which lowers the amount of taxable income.
Check whether your state offers tax credits or deductions for IVF so you can claim this correctly on your tax return.

Takeaway

There’s no denying that IVF treatment comes with a hefty price tag. But knowing how you can reclaim some of your out-of-pocket expenses can help you feel more in control while going through fertility treatment. Educate yourself on the tax policy in your state and consult with a tax professional to see how you can reap the benefits on your tax return this year!

This article has been verified by a medical professional