IVF Tax Credits and Deductions for Surrogacy [FAQ]

If you're in the midst of growing your family, you may be looking for ways to make the journey more affordable.

One of the most common questions people ask is: "Can you write off in vitro fertilization (IVF) on taxes?" The good news is that some of your fertility-related expenses may qualify for deductions or credits, depending on your situation.

Below, you'll find answers to frequently asked questions about tax deductions and credits for IVF and surrogacy. We'll also cover which expenses may be eligible and how American Surrogacy can support your next steps.

If you want more details or help navigating this process, you can fill out our form for free information.

IVF Tax Deductions

Can You Write Off IVF on Taxes?

Yes, in many cases, IVF costs qualify as medical expense deductions under federal tax law. The IRS allows you to deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). IVF typically falls into this category, including treatments like egg retrieval, embryo transfer and related testing.

How Much Do You Get Back in Taxes for IVF?

It's important to understand that deductions don't mean a check in the mail. Instead, they reduce your taxable income, which can lower your tax bill. The amount your bill will be lowered depends on your income, filing status and how much you spent.

How Can You Deduct IVF Costs on Taxes?

To deduct IVF costs, you’ll need to itemize your deductions on Schedule A of your tax return. Add up all qualifying medical expenses, and then subtract 7.5% of your AGI.

For example, if your AGI is $100,000, you can deduct qualified medical expenses above $7,500. If you spent $15,000 on IVF, $7,500 could be deducted from your taxable income.

What Expenses Qualify as IVF Tax Write Offs?

Here are some common expenses that may be tax deductible:

Doctor visits and fertility consultations
IVF procedures and lab fees
Egg retrieval and embryo transfer
Anesthesia and surgical center costs
Travel for medical purposes
Medications prescribed as part of your treatment

IVF-Related Tax Benefits

Are IVF Medications Tax-Deductible?

Yes. As long as IVF medications are prescribed by a doctor for your treatment, they count as qualified medical expenses.

Are Donor Eggs Tax-Deductible?

Yes, donor egg expenses are tax-deductible if they're medically necessary. Qualified expenses may include the donor's medical evaluations, legal services related to the donation and compensation for the donor. As with any medical tax deduction, you'll need documentation to show that these expenses were incurred as part of a medically advised treatment plan.

Is Donor Sperm Tax-Deductible?

Yes, donor sperm costs are tax-deductible as long as they're medically necessary. Qualified expenses can include the cost of the sperm itself, insemination procedures, sperm bank storage fees and any required testing. Make sure to keep documentation to show these expenses were part of a medically advised fertility plan.

Can You Use HSA for IVF?

Yes. If you have a Health Savings Account, you can use it to pay for eligible IVF expenses without being taxed on those funds. This offers a valuable way to cover out-of-pocket costs.

Tax Credits and Deductions for Surrogacy

Are There IVF Tax Credits for Surrogacy?

Currently, there’s no federal tax credit for IVF tied specifically to surrogacy. However, some states have implemented IVF tax credits or reimbursements.

For example:

New York: The New York State Infertility Reimbursement Program offers IVF grants to eligible individuals through participating clinics. While not a tax credit, this state-funded program can significantly reduce the cost of IVF.
West Virginia: The state offers a personal income tax deduction for up to $2,000 per year for IVF-related medical expenses. This is established under West Virginia Code, section 11-21-12, which covers infertility-related deductions.

Are There Surrogacy Tax Credits?

No. There are no federal surrogacy tax credits available at this time. The IRS does not currently offer tax relief specific to gestational surrogacy arrangements.

Are Surrogacy Expenses Tax-Deductible?

No. Surrogacy expenses are not tax-deductible under current federal guidelines. The IRS does not consider payments to a surrogate or agency as qualifying medical expenses for the intended parents.

Are Surrogacy Agency Fees Tax-Deductible?

No. Like legal fees, surrogacy agency fees are generally not tax-deductible. These are seen as service costs, not qualified medical expenses.

Are Legal Fees for Surrogacy Tax-Deductible?

No. Legal fees related to contracts, parentage orders and surrogate agreements are considered personal expenses, not medical.

Are Surrogate Expenses Tax-Deductible?

No. Surrogate expenses are not deductible, even though they support the medical process. This includes the surrogate’s compensation and non-medical reimbursements.

Are Surrogate Medical Expenses Tax-Deductible?

No, surrogate medical expenses are not tax-deductible. To be eligible, the medical treatment must be performed on the taxpayer or their dependent, not on a third party like a gestational surrogate.

How American Surrogacy Supports Intended Parents

At American Surrogacy, we believe navigating tax credits for IVF or surrogacy shouldn’t be harder than starting your family.

Our specialists can help you understand what financial resources may be available and connect you with professionals who are experienced in this space.

Financial planning is part of the process, but you don’t have to figure it out alone. Contact us today for a free consultation and expert support.