Can I Deduct IVF Expenses on My Taxes?

If you haven't figured it out yet, you will - IVF is VERY expensive. Our first experience in 2014 was our learning experience. We didn't keep track of our expenses every well, but we know we spent about $25k on IVF. (YIKES!) This time we were a little more savvy. We kept detailed spreadsheets on our expenses and knew what we could say 'no thank you' to and what was actually a necessity. I will write a post about that soon and provide that spreadsheet for you. 

One of the areas we learned a lot about this time vs. last time was how to deduct our IVF (medical) expenses on our taxes. Our medical expenses for IVF in 2016 were about 15k, and this did not include some of the items we could have taken the time to calculate from the list below. This meant that we went from almost no refund at all, to about $4k coming back to us! As we are doing more IVF in 2107 and have a lot of medical expenses coming our way this year, we will need that unexpected refund. 

PLEASE NOTE, I AM NOT A TAX EXPERT

You need to do your own research on the topic before claiming anything on your taxes. The Laws could vary by state, but this 10% rule seems to be legit, and I know it worked for us. Also, remember, this is for ALL medical expenses, not just IVF related expenses. We only figured in the IVF expenses because they were easily calculated, but we will be keeping better record for our 2017 taxes. 

How I kept track: 

• I keep a spreadsheet with our expenses, receipt numbers, dates, etc. that I can easily reference back to and keep a running total. 
• I have a folder with all our IVF paperwork, including all bills, etc. In case there is ever any questioning of our expenses I can easily get to the item in question. 
• I didn't keep track of mileage, (should have) but if you wanted to, just write your appointments on the calendar with the location of the appointments. Figure out the round trip mileage for those appointments and write it under the appointment (this should be easy because it will be the same for most appointments.) 

You can deduct your medical expenses if they are more than 10% of your adjusted gross income (AGI)

Here is a good explanation from H&R Block on exactly what you can deduct:

For any medical condition, it includes the cost of:

• Diagnosis

• Cure

• Mitigation

• Treatment

• Prevention

• Items needed for the above purposes, including:

1. Equipment
2. Supplies
3. Diagnostic devices

• Cost of medical care from any of these types of practitioners:

1. Acupuncturists
2. Chiropractors
3. Dentists
4. Eye doctors
5. Medical doctors
6. Occupational therapists
7. Osteopathic doctors
8. Physical therapists
9. Podiatrists
10. Psychiatrists
11. Psychoanalysts giving medical care
12. Psychologists
13. Other qualified medical practitioners

• Transportation costs to and from medical care. If you drive your own car, the deduction is 23 cents per mile in 2016.

• Prescription medicines

If you want to deduct medical expenses, they must alleviate or prevent a physical or mental defect or illness. You can't deduct expenses that simply benefit general health, like vitamins or a vacation.