IVF/TAX question

Tiffany946

We did a cost sharing program with our fertility clinic.  Since we will now get a refund of about $13,000 does anyone know if I have to claim this on my taxes as earned income?  Just trying to find out and wasn't even sure what board would be appropriate.  I was thinking maybe someone here might have gone through this.  TIA!

Roxie5739

I am not the best expert on this (but I am a CFO!) but no is what I believe to the correct answer unless you have already claimed the medical deduction for medical in excess of 7.5% of your income. It is a reimbursement of costs, not income in my book.

Tiffany946

Yes, cost sharing is a program for IVF.  So, yes we did do ART.

tst1998

Roxie5739:

I am not the best expert on this (but I am a CFO!) but no is what I believe to the correct answer unless you have already claimed the medical deduction for medical in excess of 7.5% of your income. It is a reimbursement of costs, not income in my book.

This sounds right to me. If you are being refunded money that you previously paid them, it would be like returning something to the store and getting a refund. You already paid income taxes on that money. However, if you claimed it as a medical expense deduction in a prior year, then you would have to account for that. 

Sarah226

tst1998:

Roxie5739:

I am not the best expert on this (but I am a CFO!) but no is what I believe to the correct answer unless you have already claimed the medical deduction for medical in excess of 7.5% of your income. It is a reimbursement of costs, not income in my book.

This sounds right to me. If you are being refunded money that you previously paid them, it would be like returning something to the store and getting a refund. You already paid income taxes on that money. However, if you claimed it as a medical expense deduction in a prior year, then you would have to account for that. 

I second this.