The short answer is no—in most cases, you cannot write off surrogacy expenses on your taxes—surrogacy tax deduction is not possible.. Although surrogacy involves significant medical and legal costs, the Internal Revenue Service (IRS) does not allow these expenses to qualify as deductible medical expenses for federal income tax purposes. The reason lies in how the IRS defines medical deductions and whose medical care qualifies for them.
IRS Rules on Medical Expense Deductions
Under Internal Revenue Code Section 213, taxpayers may deduct unreimbursed medical expenses that are primarily paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. However, these expenses must relate directly to the taxpayer, their spouse, or a dependent.
In the case of surrogacy, the medical procedures—such as embryo transfer, pregnancy monitoring, and delivery—are performed on the surrogate, not on the taxpayer. Because the IRS only permits deductions for the taxpayer’s own medical care (or that of a dependent), surrogacy expenses do not qualify.
Which Surrogacy Costs Are Not Deductible
The following surrogacy-related expenses are generally not tax deductible:
- Compensation paid to the surrogate mother
- Medical expenses incurred by the surrogate
- Agency or coordination fees
- Legal and contractual fees related to the surrogacy arrangement
- Travel, insurance, and related costs for the surrogate
Even though these costs may be necessary to have a child, they are not considered medical expenses under IRS rules because they benefit another individual.
Possible Exceptions and Alternatives
While surrogacy costs cannot be written off, intended parents may still deduct certain fertility-related expenses that apply directly to them. For example, costs related to in vitro fertilization (IVF), egg or sperm retrieval, or medical evaluations for the intended parents themselves may qualify as deductible medical expenses.
Additionally, some employers offer family-building or fertility benefits that reimburse part of surrogacy or IVF costs. These benefits are not tax deductions but can reduce out-of-pocket expenses.
Conclusion on Surrogacy Tax Deduction
In most situations, you cannot write off surrogacy expenses on your taxes, as the IRS does not consider them deductible medical costs. However, other fertility-related medical treatments may qualify. Always consult a licensed tax professional to review your specific situation and identify any available deductions or employer-based benefits.
Get a clear, CPA-backed answer on your surrogacy deductions — schedule a consult with Dimov Tax.