Is in vitro fertilization cost deductible?

Dear Tax Talk,
My husband and I are planning on starting a family, but we have to go through the in vitro fertilization procedure. The estimated cost will be between $15,000 and $20,000. Our combined annual income is almost $100,000. Will we be able to deduct the IVF cost from our 2015 taxes? Thank you.
— Natasha

Dear Natasha,
IVF procedures are deductible as medical expenses but are subject to the same limitations as all medical expenses on Schedule A, Itemized Deductions.

For 2015, this means your medical expenses are deductible to the extent they exceed 10 percent of your adjusted gross income unless you or your spouse is older than 65. Then the threshold is 7.5 percent of your adjusted gross income. Note that to claim the medical expenses, you must be itemizing your deductions rather than taking the standard deduction.

You can deduct medical expenses that are paid during the year, including amounts that you pay with a credit card. This includes medical and dental expenses for you, your spouse and your dependents. It also includes the cost of medical insurance if it was paid with your own after-tax dollars — meaning it was not paid on a pretax basis through your employer.

You cannot include any medical expenses that are reimbursed from a health savings account or flexible spending account, as funds you receive from these plans are usually tax-free.

You can also include the cost of travel for medical care. The mileage amount for medical care is 23.5 cents per mile for 2014 (lowered to 23 cents per mile for 2015). So think about keeping a log of miles driven, public transportation used and even parking and tolls.

Don’t forget about keeping track of your insurance copays and deductibles that you pay, along with laboratory fees and prescription medications paid out of pocket. It may be well worth the time and effort to keep good records and track this information, as it may reduce your taxes.

Thanks for the great question and all the best to you.

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