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Tax deductions for IVF treatment

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Tax Deductions for IVF Treatment in 2024

In Vitro Fertilization or IVF has been considered a blessing for couples who are unable to conceive naturally. This method proves to be a ray of hope for those seeking an heir for the continuation of their family legacy. Luckily, the US tax code offers some potential relief in the form of deductions for certain IVF-related expenses.

The guide below sheds light on tax deductions for IVF treatment in 2024, keeping in mind the most updated tax laws: 

Understanding Medical Expense Deduction

Taxpayers living in the US are permitted by the IRS to deduct their qualified medical expenses related to IVF that exceed 7.5% of their Adjusted Gross Income (AGI) on their annual federal income tax. You can cover your IVF expenses under their category if they have been characteristically identified as medical expenses. 

According to IRS, the definition of medical expense is defined as ‘amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting a structure or function of the body.’

But there is a bit of ambiguity, considering IVF and infertility. Infertility is not considered an illness or a disease; it is a condition that exists naturally, and an infertile person can also successfully thrive in the same society as us, just like any fertile individual. 

But here’s a twist; despite infertility not being considered an illness, treating it comes under qualified medical expenses. 

What Expenses Can Be Deducted?

Although the IRS has allowed qualified IVF expenses to be claimed as deductible expenses, it is important to understand which of these expenses are categorized as deductible and non-deductible costs:

Deductible:

  1. Egg retrieval and sperm retrieval costs.
  2. Procedures concerned with IVF, such fertilization, embryo transfer, related medications, etc. 
  3. Cryopreservation (freezing) of eggs or embryos.
  4. Fees associated with lab tests, appointment charges, etc. 

Non-Deductible:

  1. Surrogacy costs, related travel expenses for the surrogate, legal fees, etc. 
  2. Expenses incurred for non-medical purposes, including gender selection, embryo selection, etc. 
  3. All those medications that a doctor has not prescribed.

Maximizing Your Deduction

If you want to maximize your potential tax deduction and minimize unwanted tax deductions, then you must stick to the following pointers:

  1. Keep meticulous records
  2. Consult a tax professional. 
  3. AGI consideration

Most Frequently Asked Question (FAQ):

Can I deduct travel expenses related to IVF treatment?

Usually, if you have traveled to seek medical help, this type of travel expense can be claimed as a deductible expense, but only if the sole purpose of the trip was to seek medical help. 

But in case of IVF, IRS will need substantial documents to substantiate the medical necessity of travel for treatment. Under such circumstances, it is advisable to seek assistance from reputable tax agencies like Dimvotax.com. 

Bottom Line: 

Dealing with IVF tax complications is indeed necessary and quite significant for anyone who is most likely to receive IVF treatment. This understanding of IVF related tax implications is necessary to stay compliant with IRS.

The easiest way to deal with and understand IRS tax guidelines concerning IVF is by seeking assistance from a qualified tax agency such as Dimovtax.com, whose qualified tax experts can help you maximize your deductions and minimize your tax burden, allowing you to focus on more important matters—building your family.

Need to speak to an expert?

Call us today at (833) 829-1120, email us at info@dimovtax.com, or fill out the form and we’ll get in touch immediately.

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