Is IVF Tax Deductible? Your Complete Guide to Saving Money on Fertility Treatments
Starting a family is a dream for many, but when nature needs a little help, the costs can pile up fast. If you’re considering in vitro fertilization (IVF), you’ve probably noticed the price tag—anywhere from $15,000 to $30,000 per cycle, and that’s before extra fees like medications or genetic testing. It’s a lot to swallow. But here’s a silver lining: you might be able to ease the financial sting by deducting some of those costs on your taxes. The big question is—is IVF tax deductible? Spoiler alert: yes, it often is, but there’s more to it than a simple yes or no. Let’s dive into everything you need to know to make the most of this possibility, with practical tips, real-life examples, and some fresh insights you won’t find everywhere else.
What Does “Tax Deductible” Even Mean?
Imagine you’re handing over a big chunk of your paycheck to the government every year—your taxes. A tax deduction is like a coupon that says, “Hey, I already spent this money on something important, so don’t tax me on it.” When it comes to IVF, the Internal Revenue Service (IRS) considers it a medical expense, which means it can qualify for a deduction under the right conditions. The catch? You don’t get a dollar-for-dollar refund—it just lowers the amount of your income that gets taxed, saving you a bit depending on your tax bracket.
For example, if you’re in the 22% tax bracket and deduct $10,000, you’d save $2,200 in taxes. Not a full refund, but it’s something! The trick is figuring out if your IVF costs meet the IRS rules and how to maximize what you can claim.
The Basics: Yes, IVF Can Be Tax Deductible
The IRS says medical expenses—including “fertility enhancement” like IVF—are deductible if they’re for you, your spouse, or your dependent, and they help overcome an inability to have children. This is great news! Whether it’s egg retrieval, embryo transfers, or even temporary storage of eggs or sperm, these costs can count. But there’s a hurdle: your total medical expenses (IVF plus anything else, like doctor visits or prescriptions) need to exceed 7.5% of your adjusted gross income (AGI) before you can deduct anything.
How the 7.5% Rule Works
Your AGI is basically your total income minus a few specific adjustments—like student loan interest or contributions to a retirement account. Let’s break it down with an example:
- Say you and your partner earn $80,000 a year together (your AGI).
- 7.5% of $80,000 is $6,000.
- You spent $20,000 on IVF, plus $1,000 on other medical stuff, totaling $21,000.
- Subtract the $6,000 threshold, and you can deduct $15,000.
That $15,000 deduction could save you thousands, depending on your tax rate. But if your medical expenses don’t hit that 7.5% mark, you’re out of luck—unless you’ve got other tricks up your sleeve, which we’ll get to later.
What Counts as an IVF Expense?
The IRS is pretty generous about what qualifies. Here’s a rundown of what you can likely deduct:
✔️ Core IVF costs: Egg retrieval, sperm collection, fertilization, embryo transfer.
✔️ Medications: Those pricey hormone injections and fertility drugs.
✔️ Lab fees: Testing, ultrasounds, and embryo storage (if temporary).
✔️ Travel: Mileage or lodging if you travel for treatment (keep a log!).
✔️ Related care: Acupuncture or therapy tied to your fertility journey.
❌ What doesn’t count: Cosmetic procedures unrelated to fertility, or over-the-counter vitamins unless prescribed by a doctor.
One tip: keep every receipt and note from your doctor. If the IRS ever asks, you’ll need proof these expenses were medically necessary.
The Itemizing Dilemma: Standard vs. Medical Deductions
Here’s where it gets a little tricky. To claim IVF costs, you have to itemize your deductions on your tax return instead of taking the standard deduction. For 2025, the standard deduction is $14,600 for singles and $29,200 for married couples filing jointly. Itemizing only makes sense if all your deductions (medical, charitable donations, mortgage interest, etc.) add up to more than that.
Quick Quiz: Should You Itemize?
Answer these quick questions to see if itemizing might work for you:
- Did you spend more than 7.5% of your AGI on medical expenses (like IVF)?
- Do you have other big deductions—like a home mortgage or hefty charitable gifts?
- Does your total itemized amount beat the standard deduction?
If you answered “yes” to all three, itemizing could be your golden ticket. For many IVF patients, a single cycle’s cost can push you over the standard deduction, especially if you time it right—which brings us to a smart strategy.
Timing Is Everything: Bunch Your Expenses
One thing not talked about enough is how when you pay for IVF can make a huge difference. The IRS only lets you deduct expenses paid in the tax year you’re filing for. Spreading costs over two years might mean you never hit that 7.5% threshold. Instead, try “bunching” your expenses into one year.
How to Bunch Like a Pro
Picture this: You’re planning two IVF cycles, one in December 2025 and one in January 2026. If each costs $15,000 and your AGI is $100,000, here’s the math:
- Split across years: $15,000 in 2025 is only 15% of AGI, but 7.5% is $7,500, so you deduct $7,500. Same in 2026. Total savings: $15,000 deducted.
- Bunched in 2025: $30,000 total, minus $7,500 threshold = $22,500 deducted.
In a 24% tax bracket, bunching saves you $5,400 versus $3,600 split. That’s an extra $1,800 back in your pocket! How do you pull this off?
- Plan ahead: Schedule treatments close together in one calendar year.
- Use financing: Take out a loan or use a credit card to pay upfront, then deduct it all in that year.
- Talk to your clinic: Some offer multi-cycle discounts, which also helps bunch costs.
This strategy isn’t just theory—couples have used it to turn a stressful expense into a bigger tax break.
Surrogacy and Egg Donors: A Gray Area
If IVF alone isn’t your path and you’re using a surrogate or egg donor, things get murkier. The IRS says expenses must be for your medical care (or your spouse’s or dependent’s). Costs for a surrogate’s care—like her medical bills or travel—often don’t qualify unless you can prove it’s tied to your infertility treatment. A 2025 IRS private letter ruling (PLR 202505002) confirmed this, denying a couple deductions for their surrogate’s IVF costs, though they could claim the husband’s sperm donation expenses.
What About Same-Sex Couples or Single Parents?
Here’s where it gets unfair. Historically, the IRS has favored married, heterosexual couples with a clear infertility diagnosis. If you’re a single person or in a same-sex partnership, deductions can be harder to claim unless you’ve got a medical infertility diagnosis. For example, a gay man using a surrogate was denied deductions in a 2008 case (Magdalin v. Commissioner) because he was fertile—the treatment was for someone else’s body. It’s a gap in the law that hasn’t caught up with modern family-building, but advocacy groups are pushing for change.
A Workaround: Private Letter Rulings
If you’re in this boat, you could request a Private Letter Ruling from the IRS. It’s a long shot and costs money (filing fees start at $3,000), but it’s a way to ask for clarity on your specific situation. More on this later when we talk about future trends.
Beyond Deductions: HSAs and FSAs to the Rescue
Tax deductions aren’t the only way to save. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) let you pay for IVF with pre-tax dollars, which is like an instant discount.
HSA vs. FSA: What’s the Difference?
| Feature | HSA | FSA |
|---|---|---|
| Who qualifies? | High-deductible health plan | Employer-offered benefit |
| 2025 limit | $4,300 (individual), $8,550 (family) | $3,300 (usually) |
| Rollover? | Yes, keeps growing | Use it or lose it (by year-end) |
| IVF eligible? | Yes | Yes |
- HSA perk: If you don’t use it this year, it rolls over. One couple I heard about saved $10,000 in their HSA over a few years, then used it tax-free for IVF.
- FSA tip: Max it out the year you plan treatment, since you can’t carry it forward.
Check with your employer—some even chip in, making it a double win.
Real Stories: How Couples Made It Work
Let’s meet Sarah and Mike, a couple from California. Their AGI was $120,000, and they spent $25,000 on IVF in 2024. The 7.5% threshold was $9,000, so they deducted $16,000. They also had $5,000 in mortgage interest and $2,000 in donations, totaling $23,000 in itemized deductions. Since that beat the $29,200 standard deduction for married couples, they saved about $5,280 (at 24% tax rate). Sarah’s tip? “We tracked everything—every ultrasound, every mile to the clinic. It added up!”
Then there’s Lisa, a single woman in Texas. She used an HSA to cover $12,000 of her $18,000 IVF bill, avoiding taxes on that chunk. The rest she deducted by itemizing, thanks to a big year of medical costs. “It felt like a small victory,” she said.
What’s Missing From the Conversation?
Most articles stop at the basics—yes, IVF is deductible, here’s the 7.5% rule. But there are three big topics they often skip that could save you money or headaches:
1. Emotional Costs and Tax Relief
Fertility journeys are stressful, and therapy is often part of the process. Guess what? Therapy tied to infertility—like coping with failed cycles—can be deductible too. A 2023 study from the American Society for Reproductive Medicine found 60% of IVF patients sought mental health support. If you’re one of them, add those sessions to your medical tally. One reader shared, “My $2,000 in therapy costs tipped me over the deduction line—it was a lifeline and a tax break.”
2. State-Level Boosts
Federal deductions are just the start. Some states offer extra help. Arkansas, Colorado, and California, for instance, mandate insurance coverage for IVF in certain plans, reducing out-of-pocket costs you’d need to deduct. Others, like Maryland, give tax credits for fertility treatments—money straight back, not just a deduction. Check your state’s tax site; it’s an overlooked goldmine.
3. Retroactive Savings
Missed a deduction last year? You can amend your return with IRS Form 1040X within three years of filing or two years of paying the tax. Say you spent $20,000 on IVF in 2023 but didn’t itemize. File an amendment by April 2026, and you could get a refund check. A tax pro I spoke with said she’s seen clients reclaim $3,000+ this way.
Interactive Poll: What’s Your Plan?
Let’s pause for a sec—how are you tackling IVF costs? Vote below and see what others are doing:
- A) Saving up and paying out of pocket
- B) Using an HSA/FSA
- C) Hoping for a big tax deduction
- D) Mixing loans and insurance
[Poll results will update live—check back to see the trend!]
The Future: Could Tax Laws Change?
IVF’s tax status isn’t set in stone. In September 2024, Rep. Mariannette Miller-Meeks introduced a bill for a $30,000 refundable tax credit for IVF—meaning you’d get cash back even if you owe no taxes. It’s not law yet, but it’s a sign of shifting attitudes. Advocacy groups are also pushing for broader definitions of “medical care” to include surrogacy and same-sex family-building. On X, chatter about this bill spiked in early 2025, with users hopeful but skeptical: “Great idea, but will it pass Congress?”
Meanwhile, a 2025 IRS ruling hinted at tightening rules for surrogacy deductions, so stay tuned. Subscribing to fertility advocacy updates (like from RESOLVE) keeps you in the loop.
Step-by-Step: How to Claim Your IVF Deduction
Ready to file? Here’s your game plan for 2025 taxes (due April 2026):
- Gather proof: Collect receipts, doctor notes, and mileage logs.
- Calculate AGI: Check your W-2 or last year’s return (Line 11 on Form 1040).
- Tally medical costs: Add IVF and other expenses—don’t forget therapy or travel.
- Run the numbers: Subtract 7.5% of AGI from your total. Got a positive number? That’s your deduction.
- Itemized vs. standard: Add other deductions (charity, interest). If it beats $14,600/$29,200, itemize on Schedule A.
- File smart: Use tax software or a pro to avoid mistakes.
Pro tip: Apps like Evernote can organize your receipts digitally—less clutter, more peace of mind.
A Mini Calculator: Estimate Your Savings
Want a rough idea of your deduction? Try this:
- My AGI: $________
- 7.5% of AGI: $________ (AGI x 0.075)
- Total medical costs: $________
- Deductible amount: $________ (medical costs – 7.5% AGI)
- Tax savings: $________ (deductible amount x your tax rate, e.g., 0.24 for 24%)
Plug in your numbers and see what you might save!
Final Thoughts: You’ve Got Options
IVF is a big investment—emotionally and financially—but you don’t have to shoulder it all alone. Tax deductions, HSAs, and smart timing can lighten the load. Whether you’re just starting or mid-journey, every dollar saved counts. Talk to a tax pro, explore state perks, and keep an eye on new laws. You’re not just building a family; you’re building a strategy to make it happen.
Got a story about how you saved on IVF? Drop it in the comments—I’d love to hear! And if this helped, share it with someone else on the same path. Let’s keep the conversation going.
