Is IVF Tax Deductible?

In the U.S., about 1 in 10 women ages 15 to 44 grapple with the emotional challenge of struggling to conceive or carry a pregnancy to term. If you’re one of those people, your healthcare provider may recommend in vitro fertilization (IVF), especially if other fertility treatments don’t work or are not an option for you. 

If you have to pay for IVF out of pocket, the IRS allows you to write off a portion of the costs on your tax return if you meet certain requirements. By deducting procedures like egg retrievals and transfers and other expenses — such as medications, ultrasounds, anesthesia, and even counseling — you can make IVF more affordable.  

How much does IVF typically cost?

IVF is a form of assisted reproductive therapy that can increase your chances of getting pregnant. But it can be expensive. The average cost of one IVF cycle is $12,400, but the total price tag can be as much as $30,000 when you include the costs of medication and lab tests. And many women need to undergo multiple cycles to get pregnant, so the costs can really add up. 

Some of the factors that will impact the total price you pay for IVF are: 

• Type of treatment: Traditional IVF is often more expensive than minimal stimulation, or modified natural cycle, IVF.

• Medications: Specialty pharmacies carry the induction, trigger, and progesterone medications needed for IVF. Insurance coverage, pharmacy choice, and using medications from previous cycles can affect your medication costs.

• Monitoring and procedure costs: There are often separate fees for monitoring (blood tests and ultrasounds), provider visits, egg retrieval with anesthesia, and embryo transfer.

• Embryology lab costs: There are also fees for preimplantation genetic testing, intracytoplasmic sperm injection and embryo hatching, as well as for embryo freezing, storage, and thawing.

• Multiple cycles: Often multiple IVF cycles are needed, increasing the total cost.

• Consultations: You may end up having to pay for specialist consultations like genetic counseling and fertility assessments.

• Additional support services: If you choose to do counseling, acupuncture, and other supportive therapies, that means additional expenses.

What are the rules for making deductions and qualified medical expenses?

IRS Publication 502 recognizes IVF as a qualified medical expense. This classification is due to its role in the "diagnosis, cure, mitigation, treatment, or prevention of disease," as well as the fact that it impacts a part or function of the body.

Here are examples of IVF expenses that are tax deductible:

• Acupuncture

• Anesthesia 

• Consultations

• Egg or sperm donor fees

• Egg retrieval procedures

• Embryo transfer

• Lab fees

• Prescription fertility supplements

• Prescription medications

• Therapy and counseling

• Ultrasounds and monitoring

• Storage fees for the sperm and eggs

You can also deduct the transportation costs of traveling to and from appointments. This includes tolls and parking fees. But make sure to maintain records that back up your expenses, such as accounts of your mileage and the dates of your appointments.   

What percentage of IVF is tax deductible? 

If you choose to itemize your deductions, you can deduct your total qualifying medical expenses that exceed 7.5% of your adjusted gross income (AGI). In addition to IVF-related expenses, your qualified medical expenses for the year can include any other IRS-approved expenditures, such as hearing aids and assisted living expenses. 

How do you deduct IVF expenses on your tax return?

If you plan to itemize deductions, you may want to seek out a qualified tax professional to help you navigate the forms and requirements. But the first step of the process is to add up all of your qualified medical expenses for the year. These expenses may include: 

• Dental care

• IVF-related expenses 

• Prescription eyeglasses

• Prescription medications

• Transportation costs related to medical care 

Then, determine your AGI for the year and calculate how much of your qualified medical expenses you can deduct on your tax return. You can only deduct the amount that exceeds 7.5% of your AGI.

For example, suppose your AGI for the year is $90,000 and you have paid $20,000 in qualified medical expenses, which includes $18,000 for IVF. You would be eligible to deduct $13,250 in qualified medical expenses, which is the difference between your total expenses of $20,000 and 7.5% of your AGI, or $6,750.

Steps to write off IVF expenses 

To claim the IVF expenses as deductions on your tax return, follow these steps:

• Gather your receipts. Assemble all of the receipts for your medical expenses, including those for IVF. You can work with a qualified tax advisor to determine which expenses qualify as deductions.  

• Calculate your total expenses. Calculate your total qualified medical expenses for the year. Then, in the “Medical and Dental Expenses” section of Schedule A, list that total on line 1, which is for itemized deductions.

• Calculate your AGI threshold. On line 2, enter your AGI for the year. And on line 3, list the product of your AGI multiplied 7.5%.

• Deduct your expenses. Subtract the amount on line 3 (7.5% of your AGI) from the expenses total on line 1 to find out your deductible amount.

• Finalize Schedule A and attach it to your tax return. Once you complete Schedule A, attach it to your Form 1040 to be submitted with your tax return.

What records should you keep for your tax deductions?

Make sure to keep all of the receipts for your IVF expenses. You should also keep documents, such as prescriptions or provider notes, that explain the reasons for the expenses. 

You may need to ask your healthcare provider for a letter of medical necessity (LOMN) for certain expenses. An LOMN explains why a certain treatment or product, such as supplements, is needed for medical purposes. 

The IRS advises retaining your tax records for at least 3 years from the date of filing your original return or 2 years from the date the taxes were paid (whichever is later). Preserving these documents is crucial in case the IRS audits your tax return.

Can you pay for IVF with HSA or FSA funds?

Yes, you can use funds from a health savings account (HSA) or flexible spending account (FSA) to cover the cost of IVF expenses. If you have a health reimbursement arrangement (HRA), you can also use those funds to cover IVF costs. 

The IRS generally recognizes IVF-related expenses as qualified medical expenses. But, again, the expenses must be for products and services that serve a medical purpose. In this case, the expenses need to help with infertility.

It's important to note that you can only use HSA or FSA funds for IVF expenses that are not covered or reimbursed by health insurance or any other source. One national survey of employer-sponsored health plans showed that more employers are now offering coverage for IVF. According to the findings, 43% of the largest U.S. employers provided coverage for IVF in 2022, up from 27% in 2020. If you have an employer-sponsored health plan, find out if IVF is covered and how much money you could expect to pay out of pocket.   

Also, keep in mind that the money in an HSA rolls over every year. If you expect to need IVF treatment at some point, you could contribute to an HSA every year and accumulate funds to pay for future treatment. But if you have an FSA, you will need to use the money in the account before a certain deadline, which is typically the end of the plan year, unless your employer offers a grace period or carryover option. 

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Written by:

Tom Taulli, EA

Tom Taulli, EA, founded and operates his own tax preparation and planning firm, Pathway Tax. He is a licensed enrolled agent and can represent taxpayers before the IRS. He can also prepare and advise on tax matters for all 50 states.

Edited by:

Charlene Rhinehart, CPA

Charlene Rhinehart, CPA, is a personal finance editor at GoodRx. She has been a certified public accountant for over a decade.

Reviewed by:

Patricia Pinto-Garcia, MD, MPH

Patricia Pinto-Garcia, MD, MPH, is a medical editor at GoodRx. She is a licensed, board-certified pediatrician with more than a decade of experience in academic medicine.

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