IVF is Tax Deductible | How to Get the Most Money Back

How much money will you get back in taxes for IVF?

The amount of your refund depends on your marginal tax bracket, your adjusted gross income, the total of your itemized deductions, and your ability to implement a stealthy strategy.  

IRS guidelines clearly state that “procedures such as in vitro fertilization (including temporary storage of eggs or sperm)” qualify as tax-deductible medical expenses.

You will learn the secret to making IVF more affordable by doubling or quadrupling your tax refund. Consolidate all payments and treatment into one calendar year to overcome two critical spending thresholds by utilizing financing, multi-cycle discounts, or shared-risk programs.

Writing IVF Costs Off on Taxes

Couples who merely write off In Vitro Fertilization (IVF) expenses on their taxes in April could be throwing money away. Instead, take proactive steps fourteen months earlier (in January) to maximize your refund.

Bunch your payments for all IVF treatment costs into a single calendar year rather than spreading them around!

Consolidate Treatment

Consolidating infertility and IVF treatment expenses and payments into a single calendar year is the best way to get the most money back on your taxes. IRS rules state you can include medical expenses you paid this year but not care you will receive in a future year.

As you will see below, you do not realize any savings until your annual spending exceeds two critical levels.

  1. Total itemized deductions exceed the standard deduction
  2. Unreimbursed medical and dental expenses surpass 7.5% of AGI

The industry supports three different programs designed to make IVF more affordable that conveniently increase tax savings simultaneously!

Financing & Loans

IVF financing and loans make it more feasible to bunch payments to the fertility clinic into one calendar year and maximize the amount you get back on your tax refund. Plus, the extra funding could make the cost of bringing home a baby more affordable in a way you might not expect.

For instance, several optional tax-deductible treatments improve success rates reducing the number of cycles needed to conceive – if you have enough money to pay the bill for the extras.

  • Intracytoplasmic Sperm Injection (ICSI)
  • Donor eggs and sperm  

Multi-Cycle Discounts

Multi-cycle IVF discounts offer a terrific incentive to group treatment into a single calendar year to maximize your tax refund. These programs lower prices by a hefty percentage for prepayment on two or more fresh cycles.

In this case, you enjoy a double markdown by squeezing the spending into one calendar year instead of spreading things out over time.

  1. Lower prices from the multi-cycle discount offering
  2. Bigger tax refund enabled by the prepayment requirement

Shared-Risk

IVF shared-risk programs provide yet another good reason to consolidate treatment during one year and get more money back on your taxes simultaneously. With these arrangements, you make an upfront payment for three discounted cycles and get a partial refund if pregnancy does not occur.

In this case, you could get a refund regardless of the outcome.

  • Pregnancy happens, and condensed payments yield a hefty tax reduction
  • Pregnancy does not occur, and the clinic returns a portion of your money

Overcome Two Thresholds

Even though IVF is tax-deductible, many couples cannot write off their infertility expenses because they do not meet two IRS thresholds, so consolidating your payments for treatment in one calendar year is critical.

Standard Deduction

The first floor is the standard deduction. The total of all itemized deductions must exceed this threshold, or your IVF expenses will yield zero tax savings.

Standard Deduction 2021

  • Single or Married Separately $12,550
  • Head of Household $18,800
  • Married Filing Jointly $25,100

Itemized Deductions 2021

  • Charitable Donations
  • Mortgage Interest & PMI Premiums
  • State & Local Property Taxes
  • Casualty & Theft Losses
  • Unreimbursed Medical & Dental Expenses above 7.5% of AGI

7.5% AGI Limitation

7.5% of Adjusted Gross Income (AGI) is the second floor. You do not begin saving money until your unreimbursed medical and dental payments in a given year exceed this hurdle.

IRS Topic 502 provides a comprehensive listing of qualified expenses. You want to claim every possible entry.

General Medical Expenses
Individual health & dental insurance premiumsVision care (exams, eyeglasses, contact lenses, etc.)
Annual deductiblesAuditory care (exams, hearing aids, etc.)
CopaymentsTravel and lodging costs necessary for treatment
CoinsurancePrescription medications, weight-loss & smoking cessation programs
Infertility & IVF Expenses
Donor eggs & spermPre-implantation Genetic Diagnosis (PGD) laboratory fees
Temporary egg or sperm freezingIntracytoplasmic Sperm Injection (ICSI)
Fertility medicationsConsultation fees
Pregnancy & Childbirth Expenses
Prenatal careNeonatal Intensive Care
SonogramsBreast pumps
Hospital labor & deliveryPediatrics

How Much Do You Get Back on Taxes for IVF

Now that we have covered the basics of writing off In Vitro Fertilization (IVF) on your taxes, we can focus on how much money you might get back. Read through our generic illustration of a California couple, and then input your payment figures into the calculator for a tailored estimate.

Example Illustration

Follow along as a fictitious California couple gets different amounts back on their taxes based exclusively on the timing of payments for three IVF cycles totaling $45,000.

  • Married Filing Jointly: $25,100 Standard Deduction
  • Adjusted Gross Income (AGI): $100,000
  • State and Local Taxes: $10,000
  • Home Mortgage Interest: $6,000
  • Gifts to Charity: $2,000
  • Casualty & Theft Losses: $0
  • Other Medical & Dental Expenses: $2,000
1 Year2 Years3 Years
IVF Payments$45,000$22,500$15,000
Deductible Medical Expenses Above $7,500$39,500$17,000$9,500
Total Itemized Deductions$57,500$35,000$27,500
Improvement Over Standard Deduction$32,400$9,900$2,400
Federal Taxes Saved @ 22%$7,128$2,178$528
California Taxes Saved @ 9.3%$3,013$202$49
Interim Total$10,141 once$2,380 twice$577 thrice
Grand Total$10,141$4,760$1,731

IVF Tax Calculator

Once again, IVF is tax-deductible, but the amount paid towards treatment in the given calendar year determines how much money you get back when you file your return. Input a few numbers into the online calculator, and see an instant estimate of your federal income tax savings.

We limit the illustration to married couples filing jointly to keep the calculator logic reasonably simple.