Yes, in vitro fertilization (IVF) can be a tax write-off as a medical expense under certain conditions. IVF and other fertility treatments may be deductible if they are considered medically necessary and if your total medical expenses for the year exceed a certain threshold. Here’s a detailed guide on how it works:
When You Can Deduct IVF Expenses:
The IRS allows you to deduct medical expenses, including fertility treatments like IVF, if you itemize deductions and your medical costs exceed 7.5% of your adjusted gross income (AGI). Here’s how it breaks down:
1. Qualifying Medical Expense:
IVF is considered a qualifying medical expense because it is a treatment to alleviate a medical condition (infertility). Therefore, expenses related to IVF can be written off if you meet the IRS requirements for medical deductions.
2. What IVF-Related Costs Are Deductible?
The IRS allows you to deduct most out-of-pocket medical costs related to IVF. Some common deductible IVF-related expenses include:
- Doctor’s visits and consultations related to fertility treatment
- Costs of the IVF procedure itself (e.g., retrieval, fertilization, and embryo transfer)
- Medications prescribed for IVF
- Lab and diagnostic tests associated with the procedure
- Storage fees for eggs, embryos, or sperm (if stored for immediate use)
- Surgical procedures or other treatments related to fertility
- Fertility treatments for a surrogate, if you’re responsible for those costs
3. Travel Expenses:
If you have to travel for IVF treatments, some of those costs may also be deductible. This includes:
- Transportation costs (mileage, airfare, etc.)
- Lodging expenses (up to $50 per night per person, if travel is required for medical care)
When You Can’t Deduct IVF Expenses:
There are certain limitations and situations where you may not be able to deduct IVF-related expenses:
1. 7.5% of AGI Threshold:
You can only deduct the portion of your medical expenses (including IVF) that exceeds 7.5% of your adjusted gross income (AGI). For example:
- If your AGI is $80,000, you can only deduct medical expenses that exceed $6,000 (7.5% of $80,000). So, if you spend $10,000 on IVF, only $4,000 would be deductible.
2. Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs):
If you used funds from an HSA or FSA to pay for IVF, you cannot deduct those expenses again on your tax return. HSAs and FSAs are already tax-advantaged accounts, meaning the money you put into them is pre-tax, so you’re getting the tax benefit upfront.
3. Non-Medically Necessary Expenses:
Expenses related to cosmetic procedures or other elective treatments that are not medically necessary are not deductible. However, IVF is typically not considered elective since it addresses a medical issue (infertility), making it a qualifying medical expense.
Documentation:
To deduct IVF and other medical expenses, it’s important to maintain detailed records, including:
- Receipts from doctors, hospitals, and pharmacies.
- Invoices for treatments and procedures.
- Mileage logs or travel-related expenses if applicable.
You’ll report these expenses on Schedule A of your tax return (Itemized Deductions).
Summary Table:
| Expense | Deductible? |
|---|---|
| IVF procedure and treatments | Yes, deductible as a medical expense |
| Fertility medications | Yes, deductible |
| Storage fees (for immediate use) | Yes, deductible |
| Doctor’s visits and consultations | Yes, deductible |
| Travel for IVF treatments | Yes, deductible (transportation and lodging) |
| Non-medically necessary procedures | No, not deductible |
| IVF paid with HSA/FSA funds | No, not deductible (since pre-tax dollars were used) |
Final Tip:
Since IVF can be quite expensive, tracking all your medical expenses for the year (including non-IVF ones) may help you exceed the 7.5% AGI threshold for deductions. Always keep thorough records of the costs and consult with a tax professional to ensure you’re maximizing your deductions.