Can infertility costs be tax deductible?

Submitted by Shelby D Burns Wed 10/03/2012

In vitro fertilization is one way couples struggling with infertility may realize their dream of making a family. With the average IVF cycle cost being about $12,300, the cost can be prohibitive. Fortunately, you may be able to claim an income tax deduction for the costs. Since January 2011, IVF has qualified as a deductible medical expense. The amount which can be deducted varies per person since it is a percentage of adjusted gross income. How do I deduct the expense? Medical deductions are listed on the IRS tax form Schedule A which is part of the Form 1040. You may only deduct costs incurred during that tax year regardless of when treatment started or when you think it may conclude.

What costs can be included? The IRS defines medical expenses as the cost incurred to diagnose, treat, prevent or cure an illness. Additionally, costs associated with any equipment or supplies is also included. The IRS also allows the amount you pay for insurance and transportation to treatment facilities. You can include costs for yourself, your spouse or any dependents you have at the time.

Medical deductions include any amount you paid for in vitro fertilization or storage of sperm or eggs. You can also include the cost of surgery if the purpose was to reverse a condition that prevented conception.

Where are the restrictions? You are only allowed to deduct medical expenses if they are in excess of 7.5% of your adjusted gross income. You cannot deduct any amount reimbursed, not only by the insurance company, but also by your flexible spending account. Also denied are health club dues even if utilized for rehab, nutritional supplements and future medical costs.

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