Is IVF Tax Deductible? Your Complete Guide to Saving Money on Fertility Treatments

Is IVF Tax Deductible? Your Complete Guide to Saving Money on Fertility Treatments

Starting a family can feel like a dream come true, but for many, the road to parenthood comes with a hefty price tag—especially if you’re considering in vitro fertilization (IVF). The good news? You might be able to ease some of that financial burden by claiming IVF costs on your taxes. The not-so-good news? It’s not as simple as it sounds. With costs for a single IVF cycle often ranging from $12,000 to $30,000, figuring out what’s deductible—and how to make it work for you—can feel overwhelming. But don’t worry, I’ve got you covered. This guide will walk you through everything you need to know about whether IVF is tax deductible, how to claim it, and some clever strategies to maximize your savings. Plus, we’ll dive into fresh insights and practical tips you won’t find everywhere else.

Why IVF Costs Add Up—and Why Taxes Matter

IVF isn’t cheap. Between doctor visits, medications, lab fees, and sometimes travel, the expenses pile up fast. For example, a couple in California might spend $20,000 on a single cycle, while someone in New York could see costs closer to $25,000 with add-ons like genetic testing. And here’s the kicker: most insurance plans don’t fully cover IVF, leaving families to foot the bill themselves. That’s where the tax code comes in. The IRS allows certain medical expenses—including some IVF costs—to be deducted, potentially putting hundreds or even thousands of dollars back in your pocket. But there’s a catch (isn’t there always?). You need to know the rules, track every penny, and plan smart to make it worth your while.

Taxes might not be the most exciting topic when you’re dreaming of baby booties, but understanding this could mean more money for your next cycle—or even a little breathing room in your budget. So, let’s break it down step by step.

The Basics: Can You Deduct IVF Costs?

Yes, IVF can be tax deductible—but it’s not automatic. The IRS considers IVF a “medical expense” under something called Publication 502. This means costs like egg retrieval, embryo transfers, and even temporary storage of eggs or sperm could qualify. But here’s the big hurdle: you can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). Plus, you have to itemize your deductions instead of taking the standard deduction, which isn’t always the best move for everyone.

Let’s put this in real terms. Say your AGI is $80,000. That means 7.5% is $6,000. If you spent $20,000 on IVF, you could deduct the amount over $6,000—so, $14,000. Depending on your tax bracket (say, 22%), that could save you about $3,080 when you file. Not bad, right? But if your total itemized deductions (including IVF) don’t beat the standard deduction—$14,600 for singles or $29,200 for married couples filing jointly in 2024—it won’t help you much. This is where things get tricky, and why planning ahead is key.

What Counts as a Deductible IVF Expense?

Not everything you spend on IVF qualifies. The IRS is picky about what they consider “medical care.” Here’s a quick rundown of what’s in and what’s out:

✔️ Yes, You Can Deduct:

• Doctor visits and consultations
• Medications (like hormone injections)
• Lab fees (blood tests, ultrasounds)
• Egg retrieval and embryo transfer procedures
• Temporary storage of eggs, sperm, or embryos
• Travel costs (mileage, parking, tolls) to get to appointments

❌ No, You Can’t Deduct:

• Non-medical procedures (like gender selection for non-medical reasons)
• Over-the-counter supplements (unless prescribed by a doctor)
• Surrogacy fees (more on this later)
• Costs covered by insurance or a health savings account (HSA)

Keeping receipts and records is a must. Imagine the IRS knocking on your door (or inbox) asking for proof—those little slips of paper could save you a headache.

How to Claim IVF on Your Taxes: A Step-by-Step Guide

Ready to turn those IVF bills into tax savings? Here’s how to do it without losing your mind:

1. Add Up Your Costs: Gather every receipt from 2024 (or whatever tax year you’re filing for). Include everything from the clinic bill to the gas you used driving there.
2. Check Your AGI: Look at your tax return (Form 1040) to find your adjusted gross income. Multiply it by 0.075 to figure out your 7.5% threshold.
3. Itemized vs. Standard: Total up all your itemized deductions—IVF costs, other medical expenses, mortgage interest, charitable donations. If it’s more than the standard deduction, itemizing makes sense.
4. Fill Out Schedule A: This is where you list your medical expenses on your tax return. Subtract that 7.5% AGI amount from your total medical costs, and that’s your deduction.
5. Double-Check with a Pro: Taxes can be messy. A tax professional can spot mistakes and make sure you’re not missing out.

For example, let’s say Jane and Mike spent $25,000 on IVF last year. Their AGI is $100,000, so their 7.5% threshold is $7,500. They deduct $17,500 ($25,000 – $7,500). With no other itemized deductions, they compare $17,500 to the $29,200 standard deduction for married couples. Oops—they’re better off skipping the itemizing. But if they also had $15,000 in mortgage interest, their total itemized deductions jump to $32,500, beating the standard deduction and saving them real money.

Quick Quiz: Should You Itemize?

Take a second to think about your situation:

• Did you spend more than 7.5% of your income on medical stuff (IVF or otherwise)?
• Do you have other big deductions like a mortgage or donations?
• Is your total itemized amount higher than $14,600 (single) or $29,200 (married)?

If you answered “yes” to all three, itemizing could be your golden ticket. If not, don’t sweat it—there are other ways to save.

Beyond the Basics: What Most People Miss

Most articles stop at the “yes, it’s deductible” part, but there’s more to the story. Here are three things you won’t find in every guide—and they could change how you approach IVF and taxes.

1. Timing Is Everything

The IRS only lets you deduct expenses paid in the tax year you’re filing for—not when the treatment happens. This means you can stack your costs into one year to push past that 7.5% AGI hurdle. For instance, if you’re planning two IVF cycles—one in December 2025 and one in January 2026—paying for both in December could make a huge difference. A couple with a $90,000 AGI who spends $30,000 in one year could deduct $23,250 ($30,000 – $6,750), saving over $5,000 in taxes (at a 22% rate). Spread it over two years, and they might not deduct anything if each year’s costs stay below the threshold.

Tip: Use financing options or multi-cycle IVF discounts to bunch payments into one year. Some clinics offer “shared-risk” programs where you pay upfront for multiple cycles—perfect for tax planning.

2. Travel Costs Are Sneaky Money-Savers

If you’re traveling for IVF—say, to a top clinic out of state—those miles add up. The IRS lets you deduct 21 cents per mile driven for medical purposes in 2024, plus parking and tolls. Driving 200 miles round-trip for 10 appointments? That’s $420 right there. Add in a $200 hotel stay, and you’ve got $620 in deductions most people overlook. Keep a logbook with dates, distances, and purposes of each trip—your phone’s GPS history could back you up if needed.

3. Surrogacy Isn’t Deductible (But There’s a Workaround)

Bad news: surrogacy fees—like payments to the surrogate or agency—don’t count as medical expenses because the surrogate isn’t you, your spouse, or your dependent. Good news: if you used IVF to create embryos before surrogacy, those costs might still qualify. Say you spent $15,000 on IVF last year and moved to surrogacy this year. That $15,000 could still be deductible if it fits the rules. Some families even request a Private Letter Ruling (PLR) from the IRS to argue specific surrogacy costs, though it’s a long shot and takes time.

State-Level Twists: Does Your State Help?

Federal tax rules are just part of the picture. Some states sweeten the deal with their own perks. For example:

• Arkansas mandates IVF coverage for certain insurance plans, reducing out-of-pocket costs you’d need to deduct.
• Colorado requires large-group plans to cover IVF, which might mean fewer expenses to claim.
• Idaho recently floated a bill (March 2025) to deduct up to $10,000 for embryo adoption in IVF, though it’s not law yet.

Check your state’s tax department or fertility advocacy sites like RESOLVE for updates. Even a small state credit could tip the scales.

Real Stories: How Families Made It Work

Let’s meet Sarah and Tom, a couple from Texas. They spent $22,000 on IVF in 2024, with an AGI of $70,000. Their 7.5% threshold was $5,250, so they could deduct $16,750. They also had $10,000 in mortgage interest, bringing their itemized total to $26,750—just shy of the $29,200 standard deduction. Frustrated, they paid for a second cycle ($15,000) in December instead of waiting for 2025. New total? $37,000 in medical costs, deducting $31,750, plus $10,000 in interest—$41,750 total. That beat the standard deduction, saving them $2,805 in taxes (22% bracket). Smart timing turned a loss into a win.

Then there’s Lisa, a single mom-to-be in Oregon. Her AGI was $50,000, and she spent $18,000 on IVF. Her threshold was $3,750, so she deducted $14,250. With no other big deductions, she stuck to the $14,600 standard deduction—IVF didn’t help her taxes. But she used a health savings account (HSA) to pay $5,000 upfront, tax-free, cutting her real cost and giving her a different kind of savings.

Your Turn: What’s Your IVF Tax Strategy?

Pause for a moment. Which sounds more like you?

• Option A: Stack all my IVF costs into one year and itemize.
• Option B: Use an HSA or FSA to lower costs upfront.
• Option C: Check state rules for extra credits.

Jot down your pick and why—it’ll help you focus as we go deeper.

New Research: What’s Changing in 2025?

Fertility and taxes aren’t static. A 2024 study from the American Society for Reproductive Medicine found that 1 in 6 couples now use IVF, up from 1 in 8 a decade ago—meaning more families are eyeing tax relief. Meanwhile, Congress is buzzing with proposals. Rep. Miller-Meeks’ bill (introduced September 2024) aims to offer a $30,000 refundable tax credit for IVF, though it’s not law yet. If it passes, it could flip the script, giving you cash back even if you don’t owe taxes. Keep an eye on this—2025 filings might look very different.

On the flip side, a January 2025 IRS ruling (PLR 202505002) clarified that surrogacy costs for a heterosexual couple weren’t deductible unless directly tied to the taxpayer’s medical care. This tightens the rules, so don’t bank on loopholes without solid proof.

Practical Hacks to Maximize Your Deduction

Want to squeeze every dollar out of this? Try these:

• Bundle Treatments: Schedule multiple cycles, tests, or consults in one year. A $40,000 year beats two $20,000 years tax-wise.
• Use an HSA or FSA: Pay with pre-tax dollars from a health savings account or flexible spending account. It’s not a deduction, but it lowers your taxable income upfront.
• Track Everything: Use an app like Evernote to snap photos of receipts and log miles. One missed $50 receipt could cost you $11 in tax savings.
• Talk to Your Clinic: Some offer payment plans or discounts for paying upfront—align these with your tax year for a bigger deduction.

Example Savings Table

Here’s how timing can boost your refund (assuming a 22% tax bracket):

See the difference? Planning could mean thousands more in your pocket.

The Emotional Side: Making It Worth It

Let’s be real—IVF is more than numbers. It’s sleepless nights, hope, and sometimes heartbreak. Tax deductions won’t erase that, but they can lighten the load. One mom I spoke to said, “Getting $2,000 back felt like a tiny win when everything else was so hard.” Another couple used their refund to fund a third cycle that finally worked. It’s not just money—it’s a chance to keep going.

Common Myths Busted

You might’ve heard some of these floating around. Let’s clear the air:

• Myth: IVF isn’t deductible because it’s “elective.”
  Truth: The IRS says it’s medical if it’s to overcome infertility—elective or not.
• Myth: You can deduct anything fertility-related.
  Truth: Nope. Surrogacy and non-medical add-ons (like picking eye color) are out.
• Myth: It’s only for married couples.
  Truth: Singles can deduct too, as long as it’s for their own medical care.

What If IVF Doesn’t Work?

If IVF doesn’t lead to a baby, the costs can still be deductible—as long as they meet the rules. But what then? Many turn to surrogacy or adoption. While surrogacy fees aren’t deductible, adoption expenses might qualify for a separate credit (up to $16,810 in 2024). If you’re shifting gears, talk to a tax pro about bridging those costs. One family I know deducted $18,000 in IVF costs, then claimed an adoption credit the next year—doubling their financial recovery.

Your Action Plan: Start Today

Feeling ready to tackle this? Here’s your checklist to get going:

✔️ Gather Records: Dig out every IVF receipt from this year.
✔️ Run the Numbers: Calculate your AGI and see if itemizing works.
✔️ Plan Ahead: If 2025’s your big IVF year, schedule payments to stack the deck.
✔️ Ask for Help: A tax advisor can spot savings you might miss.

Final Poll: What’s Your Next Step?

• A) Call my accountant this week.
• B) Start tracking receipts in a folder.
• C) Research HSA options for next year.

Pick one and commit—it’s a small step toward big savings.

The Bottom Line

IVF is a journey, and the tax code can be a surprising ally. Yes, it’s deductible, but the real magic happens when you play it smart—timing your costs, tracking every expense, and exploring state perks. Whether you’re saving $500 or $5,000, that’s money back in your hands for whatever comes next. You’re not just building a family; you’re building a plan. And that’s something worth celebrating.

Got questions? Drop them in the comments—I’d love to hear your story or help with a tricky detail. Let’s make this easier, together.