Key Takeaways
- Fertility treatments, including IVF, ovulation induction, and related diagnostic procedures, can be deductible medical expenses if they are medically necessary and the taxpayer is diagnosed as infertile.
- For 2026, only medical expenses exceeding 7.5% of AGI can be deducted, and deductions must be claimed by itemizing on Schedule A rather than using the standard deduction.
- Deductible costs generally include IVF procedures, fertility medications, embryo transfer fees, laboratory fees, and temporary storage of eggs or embryos linked to immediate treatment plans; long-term storage and most donor-related expenses are typically not deductible unless an IRS Private Letter Ruling applies.
- Travel and lodging related to medically necessary fertility treatments may also be deductible, with mileage deductible at 20.5 cents per mile for 2026.
- Contributions to FSAs or HSAs can cover fertility expenses pre-tax, with a 2026 FSA limit of $3,400, and taxpayers 65+ may be eligible for a $6,000 senior deduction, subject to phaseouts.
- Because fertility deductions can be complex, especially for donor eggs, surrogacy, or international treatments, consulting a tax professional is strongly recommended to avoid errors or IRS scrutiny.
Fertility treatments like in vitro fertilization (IVF) can be life-changing for couples and individuals struggling with infertility, but they often come with substantial financial costs. Understanding whether these expenses are deductible, the IRS rules, the requirement for medical necessity, and the latest 2026 updates is essential for anyone planning to claim these costs. This guide breaks down what expenses may qualify, how to claim them, and practical tips for maximizing your deductions while staying compliant with tax regulations.
Understanding Medical Expense Deductions
Medical expense deductions allow taxpayers to reduce taxable income for medically necessary expenses. Fertility treatments often qualify, but knowing the rules is essential.
What Counts as a Medical Expense?
Medical expenses fall under IRS Section 213, which allows deductions for costs paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body.
For 2026, the medical expense deduction threshold remains 7.5% of your AGI. Expenses exceeding this amount can be included when itemizing deductions. For example, if your AGI is $120,000, only medical expenses above $9,000 (7.5% of $120,000) are deductible. This threshold applies to fertility-related expenses as well.
Fertility Treatments as Medical Expenses
Fertility treatments, including IVF, ovulation induction, and certain diagnostic procedures, are generally considered medical expenses because they treat a medical condition, infertility. Medical necessity is crucial. The IRS requires a taxpayer to be declared medically infertile to deduct these costs. Treatments for non-medical reasons, such as elective family planning or fertility preservation for convenience, do not qualify.
For example, if you paid $20,000 for IVF and related medications in 2026, and your AGI is $120,000, your deductible portion would be $11,000 after subtracting the 7.5% AGI threshold.
Are IVF Treatments Specifically Deductible?
IVF occupies a special category in IRS guidance. While IVF is deductible, certain related costs require clarification.
IRS Stance on IVF
IVF procedures are considered medically necessary for individuals diagnosed with infertility. Deductible IVF costs typically include egg retrieval, fertilization procedures, embryo transfer, fertility medications, and laboratory fees associated with immediate treatment plans. Storage of eggs or embryos is deductible when it is part of an immediate treatment plan, but long-term storage not tied to current treatment generally does not qualify.
Donor Eggs
The IRS generally treats donor eggs as personal expenses and therefore not deductible. However, the situation is more nuanced. An IRS Private Letter Ruling addressed a case where taxpayers sought deductions for egg donor costs and concluded they were not deductible. That said, in specific circumstances where a medical professional can demonstrate that donor eggs are medically necessary for treatment, a taxpayer may petition the IRS for a Private Letter Ruling. This is not guaranteed but may allow deductions in rare, medically justified cases.
Examples of Deductible IVF and Fertility Costs
Expenses generally considered deductible include fertility medications prescribed for infertility, egg retrieval and IVF procedures, embryo transfer fees, and laboratory fees for fertilization, embryo culture, and temporary storage linked to immediate treatment. Expenses not typically deductible include surrogacy fees, long-term storage of eggs or embryos, and donor egg or sperm costs unless an IRS Private Letter Ruling applies.
Other Fertility Treatments That May Be Deductible
Besides IVF, several fertility treatments can be deductible when medically necessary and properly documented. Prescription fertility medications used to stimulate ovulation are deductible if medically necessary. Surgical procedures to correct infertility, such as removing uterine fibroids or repairing fallopian tubes, also qualify. Diagnostic tests, including semen analysis, hormone testing, and hysterosalpingograms, are deductible as long as they are part of a medically necessary infertility treatment plan. Throughout all these treatments, it is essential to emphasize the IRS requirement that the taxpayer must be declared medically infertile.
How to Claim IVF and Fertility-Related Deductions
Claiming fertility expenses requires itemizing deductions on Schedule A (Form 1040). Standard deduction amounts for 2026 are $32,200 for married couples filing jointly, $16,100 for single taxpayers and married individuals filing separately, and $24,150 for heads of households. If your total itemized deductions, including medical expenses, exceed the standard deduction, itemizing is advantageous.
To claim the deduction, first collect all receipts, invoices, prescriptions, and statements for IVF and other fertility expenses. Then calculate your total medical expenses, including medications, procedures, surgeries, diagnostic tests, and temporary storage fees linked to immediate treatment. Multiply your AGI by 7.5% to determine the deductible floor and report the amount above that threshold on Schedule A. Retain all documentation in case of an IRS review.
If you travel for fertility treatment, mileage can be deducted at 20.5 cents per mile for 2026, slightly lower than 2025. Lodging and other travel expenses may also qualify if necessary for treatment.
Current Fertility Treatment Legislation (2026)
Although no new federal fertility deduction law has been enacted, proposed legislation offers context for potential future tax benefits. The Infertility Treatment Affordability Act of 2025 (H.R. 4639), introduced in the 119th Congress on July 23, 2025, would provide a 50% credit for qualified infertility treatment expenses, with up to $5,000 refundable each year. The lifetime maximum credit amount would be tied to the adoption credit (approximately $17,670 for 2026). In other words, the maximum total credit over all years would be around $17,670. This bill is not yet law and is currently under committee review. Additionally, some states may offer credits or deductions for fertility treatments, so checking local tax codes is recommended.
Practical Tips for Maximizing Tax Benefits
Even when IVF is deductible, careful planning can enhance your tax savings. Combining IVF and other medical expenses, such as surgery or prescription drugs, can help you exceed the 7.5% AGI threshold. Contributions to a health flexible spending arrangement (FSA) or health savings account (HSA) reduce taxable income and can be used for IVF and fertility-related expenses, with the 2026 FSA limit set at $3,400.
Travel and lodging expenses for medical treatment, including mileage at 20.5 cents per mile, may also be deductible if properly documented. Taxpayers 65 and older can claim a $6,000 senior deduction for 2025–2028, whether itemizing or taking the standard deduction. This deduction phases out gradually at a rate of 6% (or $60 for every $1,000 of income) above $75,000 for singles and $150,000 for married couples. It fully phases out at $175,000 and $250,000 respectively.
Professional consultation is recommended for complex cases, such as donor eggs, surrogacy, or international IVF treatments.
Common Misconceptions
Some taxpayers believe all fertility expenses are deductible, but only medically necessary treatments for diagnosed infertility qualify. Surrogacy and most donor-related expenses are treated as personal costs. Recent IRS guidance (Private Letter Ruling 202505002) reaffirmed that surrogacy expenses are generally not deductible even for couples with medical infertility, as the medical procedures are performed on the surrogate rather than the taxpayer. Another misconception is that IVF expenses can be deducted without itemizing; the IRS requires that medical expenses be itemized on Schedule A to qualify.
IVF and other fertility treatments can be a significant financial investment, but many of these expenses are potentially deductible as medical costs if certain IRS requirements are met. To qualify, treatments must be medically necessary, the taxpayer must be diagnosed as infertile, and expenses must exceed 7.5% of AGI. Deductible costs include IVF procedures, fertility medications, embryo transfer fees, temporary storage linked to treatment, and related diagnostic tests. Donor eggs or sperm and long-term storage generally are not deductible unless an IRS Private Letter Ruling allows otherwise. By understanding these rules and planning carefully, taxpayers can maximize available deductions while reducing their overall tax burden.
How Optima Tax Relief Can Help
Claiming fertility-related medical expenses can be complex, and mistakes can lead to IRS scrutiny, audits, or even penalties. Misreporting non-deductible costs, failing to document medical necessity, or incorrectly calculating deductions are common issues taxpayers encounter when trying to claim IVF or other fertility treatments.
If you face tax problems related to medical expenses, Optima Tax Relief can help. Our team assists with negotiating with the IRS, resolving back taxes, stopping collection actions, and setting up manageable payment plans. Optima can address outstanding tax issues, reduce penalties, and gain professional support to ensure compliance while easing the stress of unresolved tax obligations.
Frequently Asked Questions
Is IVF tax deductible?
Yes, IVF is generally tax deductible if it is medically necessary, and the taxpayer has been diagnosed with infertility. Only expenses exceeding 7.5% of your AGI can be claimed when itemizing deductions.
Are fertility treatments tax deductible?
Fertility treatments like ovulation induction, surgery to correct infertility, and diagnostic tests may also qualify as deductible medical expenses when medically necessary. All expenses must exceed the 7.5% AGI threshold and be itemized on Schedule A.
Do I need a medical diagnosis to claim IVF deductions?
Yes, the IRS requires that a taxpayer be diagnosed as infertile for IVF and other fertility treatments to be deductible. Treatments for convenience or elective fertility preservation do not qualify.
Tax Help for People Who Owe
However, claiming fertility-related medical expenses can also create complications if not handled correctly. Misreporting non-deductible costs, failing to document medical necessity, or incorrectly calculating deductions could trigger IRS scrutiny or audits. Because each situation can be unique, it’s important to consult a qualified tax professional. Professional guidance ensures deductions are claimed accurately, helps prevent potential tax issues, and provides peace of mind during what is often a stressful financial and personal journey. Optima Tax Relief is the nation’s leading tax resolution firm with over $3 billion in resolved tax liabilities.
If You Need Tax Help, Contact Us Today for a Free Consultation
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