Tax Deductiion

Fertility Treatment is Tax Deductible!

Follow these simple tips and get the most out of your medical expenses…

Tax Tips

*NOTE: Each patient’s circumstance is unique. We recommend consulting a financial advisor or tax advisor to make certain you are taking advantage of every possible deduction, based on your individual circumstance.

The New Hope Center wants each patient to feel confident when it comes to their ability to start or expand their family, by offering them the highest level of care, outstanding treatment success rates, and innovative, as well as affordable financial options.

In addition to the CARES© Program, we strive to make patients aware of every cost-saving opportunity available, including those offered by “Uncle Sam”.

Many patients are able to take advantage of an IRS rule that allows medical expenses which exceed 10% of their adjusted gross income, to be itemized and deducted from their annual tax bill. Itemizing your medical deductions can mean a significant refund of the money you spent on your fertility treatment.

TIP #1: Keep Your Receipts

Maintain your account statements/invoices and receipts from each physician visit – not just those from our office, because infertility treatment is only part of your total medical expenses incurred throughout the year. Below is a list of expenses that you may be surprised to learn qualify as tax deductions:

  • Co-payments/Co-insurance
  • Laboratory fees
  • Prescription medications – including fertility medications
  • Diagnostic tests
  • Fertility treatment or enhancement expenses for overcoming the inability to have children (including IVF, temporary storage of eggs, sperm, or embryos, reproductive surgery, vasectomy reversal, or tubal reversal)
  • Travel expenses related to medical care including mileage, tolls, parking, hotels, and meals

For the most thorough and up-to-date information on deductibility of medical expenses, go to the IRS website.

TIP #2: Utilize a detailed log of expenses

Using a detailed record of when each expense occurred is vital in the event you are contacted to verify your deductions. The IRS form where you itemize your deductions does not provide space for you to explain why your medical expenses are higher than usual. Therefore, you may be contacted by the IRS and asked to provide additional information to verify your deductions. The more accurate and detailed your records are, the better prepared you will be to provide the information that may be requested.

TIP #3: Keep all of your records for 7 years

The IRS has the ability to request supporting documents for your tax returns for up to 7 years after you file them. Keeping your records and receipts during this period of time will allow you to provide the necessary documentation should it be requested.

#4: Forgot to write off your fertility treatment last year? It’s not too late.

TIP If you had fertility expenses you didn’t deduct last year, you can file IRS Form 1040X to amend previous tax returns to include your deductions. Form 1040X must be filed within three years from the date of your original return or within two years from the date you paid the tax, whichever is later.

TIP #5: Flexible Spending Accounts & Health Savings Accounts

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) provide alternative ways for patients to pay for out of pocket medical expenses with pre-tax dollars. Employers who offer FSA/HSA plans allow employees to save a portion of their pay in an account specifically earmarked for medical expenses.

An FSA or HSA, allows you to put aside $2,500 pre-taxed dollars. If both partners do this, that’s a total of $5,000 to be used for fertility treatment. Since Flexible Spending is not a retroactive benefit, fertility patients should consider their expenses at the beginning of the year and plan ahead.

If your FSA or HSA account is not large enough to cover all of your expenses, the remainder of expenses can still be itemized as deductions on your income taxes.

FINAL THOUGHTS….

Whether you are still researching treatment, currently undergoing treatment, or have already completed your treatment, the IRS's rule on deducting medical expenses can be a major source of assistance. Itemizing medical deductions, using an FSA account, or combining the two, will require some diligence and a little extra paperwork, but it may save you thousands of dollars in the end.

Using these tips, along with the many other programs offered at and by The New Hope Center, can put fertility treatment - and your dreams of starting or expanding your family, well within reach!