It’s that time of year again when taxes become a major concern for just about everyone, including me. Since most of my patients don’t have health insurance that covers fertility treatments, I’m sure you are looking for other ways to handle the expenses of your fertility journey. So, I asked my accountant to weigh in on IRS regulations and ways that you, the patient, can take advantage of possible tax savings for your infertility expenses. Here is what she told me:
Many health expenses, including those related to fertility treatments, are deductible.
There are 3 ways you can possibly deduct the costs of fertility treatments from your taxes:
- Run Expenses through an employer sponsored Flexible Savings Account (cafeteria plan).
- Run expenses through an HSA Account (if you have a high deductible insurance policy).
- Take an itemized deduction on your personal income tax return. The general rule is that if you have medical expenses that are more than 10% of your adjusted gross income, you can claim those expenses as a deduction (for more information of deductible medical expenses see IRS Publication 502). Possible deductible health-related expenses include:
- Health insurance premiums paid by you, not your employer
- Any cost to you for treatment of a medical condition, including most physician visits, medications, and medical procedures
- Artificial insemination, in vitro fertilization (IVF), and the temporary storage of eggs and/or sperm are deductible medical expenses
- Surgeries relating to fertility treatments are recognized by the IRS as a medical expense, as well as surgeries to reverse a prior surgery that has impacted a person’s ability to procreate
- Acupuncture treatments to increase fertility
- Counseling costs related to fertility treatment
- Travel, including mileage and lodging, to obtain fertility treatment (The IRS recommends tracking the mileage in a log book that contains the dates and purposes of each visit)
However, in order to take advantage of deducting the above medical expenses related to your fertility treatments, you must itemize your tax return. This means that you must use the standard Form 1040 with Schedule A rather than the easy, short forms. And, keep in mind that it may benefit married couples to file separately if one person incurred a large number of deductible fertility expenses over the last year.
These are just few pointers for you to keep in mind that may minimize your tax bill as you prepare your taxes this year. Remember, the IRS tax codes can change from year to year and each patient’s circumstances are unique, so we strongly advise you to seek help from a qualified tax advisor to ensure that you are taking full advantage of all eligible deductions.