How to Deduct the Cost of IVF on Federal Taxes

Submitted by Shelby D Burns Sat 03/30/2013 work

The federal government is offering fewer and fewer deductions from taxes, but fertility treatment is still allowable as a medical expense. IVF, in vitro fertilization, is an infertility medical treatment that can be deducted on your federal taxes. Medical treatment deductions must be listed on Internal Revenue Service (IRS) tax form Schedule A which is part of Form 1040. Like other deductions, the cost of infertility treatment can be subtracted from gross income.

You must surpass 7.5% of adjusted gross income in out-of-pocket expenses There is a qualification though. Deductible medical expenses for the tax year are those that exceed 7.5% of adjusted gross income. This means that you can deduct out of pocket expenses which are more than 7.5% of your earnings; up to 7.5% you pay. These are your cash expenses, not including whatever insurance may have covered or whatever the procedure’s rack rate is. If you were able to somehow negotiate a reduced cost, you may not calculate the original cost. You may only deduct actual expense to you beyond the 7.5%. You may include travel costs, lab fees, consultations and prescription drugs all associated with the fertility procedures. It is at this point that you may want to get an accountant to help you.

Itemize your tax deductions using Schedule A You must elect to itemize your tax deductions. This is the only way to deduct medical expenses. To do this, you fill out a 1040 and attach a Schedule A. Combine all medical out-of-pocket expenses for the year and enter on line 1 of Schedule A. Enter your adjusted gross income on line 2, found in Form 1040 on line 38. Multiply your adjusted gross income by .075 and note the result on line 3. Subtract this from line 3, adjusted gross income. This yields your taxable income total on line 4 which you note on line 40 of the 1040. This is how your taxable income decreases.

Reduction in income may increase your ART options Using medical expenses as a tax deductions could make undertaking IVF more affordable. It may be good idea to talk an accountant before proceeding with assisted reproductive technologies to find out if you will surpass the 7.5% threshold. You may have more options if you can deduct the expenses.

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