It’s no secret that kids are expensive. From providing for their basic needs to the exorbitant cost of childcare, they tend to soak up monetary resources quicker than expected. But for many, these expenses start even before baby arrives. This is particularly true for those utilizing Assisted Reproductive Technologies (ART) like IUI and IVF in the hopes of building their dream families.
Amidst the financial stress of fertility treatments, it’s important to find silver linings where we can. One of these is finding out that some fertility and pregnancy expenses are actually tax deductible!
So, what does this mean? Essentially, a tax deduction, or write-off, is something you can remove from your taxable income that lowers the overall amount of taxes you owe. In other words, it shows the IRS, “Look, I’ve already spent this amount of money, so I don’t need to pay taxes on it.” This “spent” money may be medical bills, invested money, lost money, or — as it turns out — IVF.
You may be hesitant to think of this as a silver lining. After all, IVF is hard enough without tacking tax season on top of it. Luckily, Hera Fertility, which creates fertility payment plans made just for you, can help ease some of the stress.
Is IVF a tax write-off?
This brings us to the main question we’re all curious about: Can you write off IVF on your taxes? The short answer is: Yes! You are allowed to write off any of the following, unreimbursed medical expenses that make up more than 7.5% of your adjusted gross income (AGI) on your personal tax return.
What does that mean? Well, let’s say you file as a single person and your AGI is $70,000. 7.5% of that is $5,250. That means any amount of money above $5,250 can be written off on your taxes.
The average IVF cycle can cost anywhere upwards of $20,000. So, in this case, anything above $5,250 can be written off—that’s nearly $15,000 in deductions!
We’ve compiled a list of fertility-related medical expenses that may be tax deductible. We say these things “might” be deductible because Congress has the power to annually change deductions and credits. It’s always a good idea to confirm the below items on the IRS website. They even have a quiz you can take to see what medical expenses can be written off.
To start, fertility treatments, including IUI, IVF, embryo/egg/sperm storage, lab fees, and any other medications and required procedures due to infertility are tax deductible. In that same vein, birth control, which many of us use at the outset of our IVF cycles, is also an expense that you are allowed to write off. You may also include pregnancy tests, which we know can really add up, in your deductions!
Some items related to your infertility or IVF journey you might not think to write off are acupuncture, therapy, and fertility supplements. Each of these is considered a qualified medical expense. To deduct supplements or vitamins, they must be recommended by a medical provider for a specific medical condition.
Another big one to consider is your health insurance premiums. Yes, that’s right, you might be able to deduct all of those out-of-pocket health insurance premiums you paid to cover your medical care at all of those appointments.
How to deduct IVF from your taxes
In order to claim medical expense write-offs, you have to provide itemized deductions, which is a list made up of eligible expenses. Be sure to save receipts from medical visits, tests, labs, and purchases for your fertility-related tax deductions.
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With your receipts handy, you can then fill out the IRS Form 1040. You will have to complete Schedule A on your personal 1040 form to complete the itemization.
For more information on medical tax deductions, you can always review the IRS’s Medical and Dental Expenses Report.
Why is writing off IVF on your taxes important?
Far too often, our infertility journeys leave us feeling powerless. Even with our teams of physicians and specialists on our side, so much is still left to chance and hope. Knowing how to advocate for ourselves, particularly on the road to parenthood, is important. One way we can do that is by learning how to reduce the financial burden. IVF is super expensive, but finding clever ways to cut costs can make a big difference.
Thankfully, there are resources to help us. We have the Rescripted community here. We have online resources like the IRS that walk us through what can and cannot be deducted. We even have access to simplified fertility financing like Hera Fertility, which has financial advisors available to chat with and walk you through your options, creating the best fertility financial plan for you. Laying out all of the information in front of you can help you feel less alone and more empowered every step of the way. Now go get those reimbursements!
Brighid Flynn is a freelance writer based in Philadelphia where she lives with her husband and puppy. She is just beginning her journey toward motherhood.