Tax deductions for IVF

storm_of_midnight · June 2012

My husband and I are in the process of saving up for IVF, and I'm looking into every possible way to cut costs. I know that IVF is tax deductible, and I just read an article about using your FSA (flexible spending account) to pay for it. I'm assuming that since your money goes in to the FSA pre-tax, you cannot, also, deduct the cost of IVF in your taxes. Does anyone know if I'm correct on this?

If you can't do both, which do you guys think would save us more money? Should we go for the FSA or deduct the expenses in our taxes later? Any other tips would be appreciated as well! Thanks ladies!

delino · June 2012

Disclaimer...I am not a tax professional. Anything said here should be discussed with your tax advisor.

That's correct that you can use your FSA OR deduct the expenses under medical expenses which of which only the amount exceeding 7.5% of your gross income is deductible. What you would do is use your FSA and then put the remainder in the medical expenses bucket. For example....you spend $15k on your IVF and have put $5k in your FSA. The $10k that was not FSA funds would be included in your medical expenses.

Mrs.McIrish · June 2012

delino:

Disclaimer...I am not a tax professional. Anything said here should be discussed with your tax advisor.

That's correct that you can use your FSA OR deduct the expenses under medical expenses which of which only the amount exceeding 7.5% of your gross income is deductible. What you would do is use your FSA and then put the remainder in the medical expenses bucket. For example....you spend $15k on your IVF and have put $5k in your FSA. The $10k that was not FSA funds would be included in your medical expenses.

Just to clarify: you can only deduct the portion you spent that is above the 7.5% of your adjusted gross income. That can be a tough amount to get to depending on your income. Here is an example:

AGI= $100,000

7.5% of that=$7500

Your IVF costs $15000

You can only deduct $7500 ($15K-$7500)

genmalone · June 2012

I deducted medical expenses last year and will be deducting even more this year. Crying

The PP gave you great advice but keep in mind you can also include all prescriptions, co-pays and even the insurance premiums you paid you paid to get to the 7.5%. I wasn't sure I would hit it but it was a little sickening to add up everything we spent on medical last year. This year will be insane with my hospital bills, IVF, d&c, and RPL. And we're still adding on!

storm_of_midnight · June 2012

Thanks for the info ladies! I know I'll need to talk to my tax advisor, but that helps clear things up. Good luck to you all!

sekura · June 2012

****Ticker Warning***

Just an FYI--the new health law makes it more difficult to deduct medical expenses; in 2013 you'll only be able to deduct funds above 10% of AGI, and you can only save $2500 in an FSA. Better to do things in 2012 if you can.

storm_of_midnight · June 2012

sekura:
****Ticker Warning***

Just an FYI--the new health law makes it more difficult to deduct medical expenses; in 2013 you'll only be able to deduct funds above 10% of AGI, and you can only save $2500 in an FSA. Better to do things in 2012 if you can.

Ugh, I hadn't thought about this. Unfortunately, there is no way we will have the money to do it in 2012. Thanks for the heads up.

Want a personalized experience?

Tax deductions for IVF

Re: Tax deductions for IVF

Choose Another Board

Search Boards