Yes, in vitro fertilization (IVF) can count as a qualified medical expense for tax purposes under current IRS rules—IVF tax deduction is possible. The Internal Revenue Service (IRS) allows taxpayers to deduct certain unreimbursed medical expenses that are primarily intended to treat infertility or enable conception. Because IVF is a recognized medical procedure to address infertility, its related costs are generally deductible when specific conditions are met.
IRS Rules for Deductible Medical Expenses
Under Internal Revenue Code Section 213, taxpayers can deduct medical expenses paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. IVF meets this standard because it is performed to overcome a medical condition—infertility—and directly affects the function of the reproductive system.
However, deductions are limited. Taxpayers can only deduct the portion of total qualified medical expenses that exceeds 7.5% of their adjusted gross income (AGI). For example, if your AGI is $100,000, you can only deduct medical expenses that exceed $7,500.
What IVF-Related Costs Are Deductible
The IRS allows deductions for a wide range of expenses directly related to IVF, including:
- Fertility medications prescribed by a doctor
- Egg retrieval and fertilization procedures
- Embryo transfer and implantation costs
- Doctor and laboratory fees
- Medical testing and ultrasounds
- Storage fees for eggs or embryos (if for immediate use in IVF)
Additionally, if IVF treatments require travel, transportation expenses to and from the clinic—such as mileage or airfare—may also be deductible, though lodging and meals are generally not.
What IVF Costs Are Not Deductible
Certain costs related to IVF are not considered deductible medical expenses. These typically include:
- Surrogacy-related expenses (for another person’s medical care)
- Legal fees for donor or surrogacy contracts
- Non-medical or elective procedures
- Storage fees for long-term embryo preservation not immediately linked to treatment
Conclusion on IVF Tax Deduction
In summary, IVF expenses generally qualify as deductible medical expenses under IRS rules when they are paid to diagnose or treat infertility. To maximize your deduction, keep detailed records and receipts of all medical payments, and consult a tax professional to ensure compliance with IRS requirements and deduction limits.