For many intended parents, IVF is the first step toward having a child. However, not all IVF journeys lead to pregnancy, and many turn to surrogacy after spending thousands on fertility treatments.
If you’ve already undergone IVF, you may be able to recover some of those costs through IVF tax write-offs and redirect those savings toward surrogacy.
In this guide, we’ll break down what you need to know about
surrogacy and IVF tax deductions, how to claim them, and when a private letter
ruling from the IRS might help.
As you transition from IVF to surrogacy, we can assist in explaining the full spectrum of expenses so you’re not caught off guard by any last-minute financial surprises. Contact us today.
The information provided in this article is intended for general informational purposes only and should not be construed as tax or financial advice. Tax laws may vary depending on your location.
Step 1: Maximize IVF Tax Deductions to Free Up Funds for Surrogacy
Yes, you can deduct IVF expenses from your taxes if they exceed 7.5% of your AGI. This means that if you’ve already invested in IVF, claiming these deductions can reduce your taxable income and increase your savings.
For example:
- AGI: $100,000
- 7.5% of that: $7,500
- IVF expenses: $20,000
- Deductible amount: $20,000-$7,500=$12,500
- Taxable income: $100,000-$12,500=87,500
What IVF Expenses are Tax Deductible?
Beyond the core costs of IVF, there are several related medical expenses that may also qualify for deductions: eductions:
- Fertility medications (hormone injections, ovarian stimulants)
- Embryo cryopreservation (freezing) fees if medically necessary for future use
- Lab and diagnostic tests (bloodwork, genetic screening)
- Anesthesia and surgical fees for egg retrieval or embryo transfer
- Travel and lodging expenses for medical care, if treatment requires out-of-town visits (subject to IRS limitations)
If you have embryos created, we can quickly match you with a pre-screened, highly-qualified surrogate. Become parents sooner.
Action Items:
- Gather all IVF-related receipts and document expenses.
- Work with a tax professional to ensure maximum deductions.
- If IVF was unsuccessful, redirect your tax savings toward surrogacy planning.
How Much Do You Get Back in Taxes for IVF?
A tax deduction is not money you “get back” like a tax refund. Instead, it is deducted from your taxable income, reducing the amount of taxes you owe and saving you money that you can put toward building your family.
If your total itemized deductible doesn’t exceed the standard deduction, IVF tax write-offs may not be beneficial.
For the 2024 tax year, the standard deduction is $14,600 for individuals and $29,200 for married couples filing jointly. Per the above example, a married couple would save $26,700 more with the standard deduction than itemizing.
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Step 2: State Tax Credits and Insurance Mandates That Can Reduce Surrogacy Costs
While federal tax law does not allow surrogacy-specific deductions, some states offer fertility tax credits, grants, or insurance coverage that can significantly reduce out-of-pocket costs for IVF and related treatments.
Understanding which state policies apply to you can help free up funds to put toward surrogacy.
States That Offer Fertility-Related Tax Benefits & Insurance Mandates
How This Helps You Afford Surrogacy
If you live in a state that provides tax credits (NY, MD, WV), you may be able to apply those savings toward surrogacy costs.
If your employer offers insurance coverage for IVF (CA, CO, CT, HI, IL, NJ, RI), your out-of-pocket expenses may be significantly reduced. If you haven’t started IVF yet, choosing a state with fertility coverage can lower initial costs before transitioning to surrogacy.
Action Plan:
- Check if your state offers fertility-related tax credits or mandates insurance coverage.
- If applicable, apply for tax credits before beginning surrogacy.
- If your employer offers fertility benefits, confirm what’s covered.
- Plan your surrogacy budget accordingly, using these savings.
Step 3: Understand the Limits of Surrogacy Tax Deductions
Is Surrogacy Tax Deductible?
Surrogacy expenses like surrogate compensation, your surrogate’s medical bills, agency fees and legal fees are generally not tax-deductible.
However, medical expenses for IVF may qualify for tax deductions, saving you money that you can put toward your surrogacy journey.
In some cases, intended parents may request a private letter ruling from the IRS to deduct certain expenses if they can prove medical necessity. This is essentially formal permission to claim tax deductions for surrogacy expenses not addressed by tax law.
Connect with a surrogacy specialist today to learn more about what’s included in your overall surrogacy cost and the financing resources available to help make your dreams of parenthood possible.null
Step 4: Keep an Eye on Federal IVF & Surrogacy Policy Changes
Trump’s IVF Executive Order & What May Come in 2025
In 2020, President Trump signed an executive order focused on improving access to fertility care for military families and federal employees.
While this order did not provide direct financial assistance, it laid the groundwork for studying how federal policies could support fertility treatments, including IVF and surrogacy.
Currently, no direct federal subsidies exist for IVF or surrogacy, but there is growing political support for expanding fertility benefits. Some experts predict that new financial assistance programs could emerge in 2025, depending on policy developments.
Action Items:
- Stay informed about upcoming federal changes that could impact fertility funding.
- Subscribe to updates from fertility advocacy groups and government health agencies.
- Plan ahead with existing resources while monitoring potential policy shifts.
Final Thoughts: Combining Tax Benefits to Afford Surrogacy
If you’re transitioning from IVF to surrogacy, your best action plan is:
Maximize IVF tax deductions to recover previous expenses.
Leverage state tax credits & insurance mandates to reduce costs.
Explore employer fertility benefits to see if surrogacy is covered.
Monitor policy changes for potential future federal support.
Since every family’s path is unique, we’re here to help you understand your financial options and ensure you’re fully prepared for the journey ahead.
Need Help Planning Your Budget? Contact us today to explore your financing options for surrogacy in 2025.
FAQ: What to Know About Surrogacy and IVF Tax Write Offs
Are Surrogacy Agency
Fees Tax Deductible?
Typically, agency fees related to surrogacy are not deductible as medical expenses.
However, like other surrogacy-related costs, a private letter ruling could potentially allow for some or all of these fees to qualify as surrogacy tax deductions if deemed medically necessary.
Are Legal Fees for
Surrogacy Tax Deductible?
Legal fees associated with surrogacy are generally not
deductible as medical expenses. That said, a private letter ruling from the IRS
could permit some of these costs to be deductible, depending on your
circumstances.
Is Donor Sperm Tax
Deductible?
If donor sperm is medically necessary, it may be tax-deductible. Costs typically range from $450 to $1,300 per vial.
While this expense may seem small compared to other fertility treatments, it can still contribute toward your total deductible medical expenses. You will likely need to request a private letter ruling to claim this deduction.
Are Donor Eggs Tax
Deductible?
Donor eggs can be considered an IVF tax write off for surrogacy if they are
medically necessary.
With donor egg costs averaging between $16,000
and $20,000 in the U.S., this can represent a significant medical expense.
As with donor sperm, a private letter ruling is generally required to deduct
these costs.
Is Embryo Donation Tax
Deductible?
Yes, you
could deduct fees for donor embryos on taxes
if you can demonstrate medical necessity. Similar to donor eggs and sperm, you will
likely need a private letter ruling to claim this deduction.
