Tax Deductions on Fertility and Pregnancy Expenses

Fertility treatments, pregnancy and adoption can be a lot to manage. Not only physically and mentally–but financially as well. Whether your IUIs and IVFs are covered by insurance or you’re paying out of pocket, there is some good news for your bank account. Your fertility treatments may actually be tax deductible! That goes for pregnancy and postpartum expenses, too.

From egg storage to postpartum supplies, we explain all of the reproductive and parenting costs you can write off on your taxes.

Can You Claim Fertility Treatments on Your Taxes?

Eligible Fertility Treatments

According to the IRS’ detailed list of medical and dental deductions, the following fertility treatments are eligible for tax deductions:

• IVF (In Vitro Fertilization): A procedure in which eggs are collected from ovaries and fertilized by sperm in a lab, then transferred to the uterus. IVF costs, including medications and related procedures, are tax-deductible.
• IUI (Intrauterine Insemination): A procedure where sperm is placed directly into the uterus during ovulation. While not specifically mentioned by the IRS, IUI falls under fertility enhancement procedures and is likely tax-deductible.
• Egg and Sperm Storage Fees: Storage costs for eggs or sperm as part of fertility treatment are tax-deductible. Annual storage fees may also be deductible.
• Surgery to Treat Infertility: Surgical procedures to enhance fertility (like removal of a uterine fibroid) or reverse prior surgeries that prevented conception are tax-deductible.

Medical Support Services That Qualify

Are medications and other therapies you might be receiving tax-deductible? You would be surprised to learn that many medications and other support services qualify for tax deductions. If they are necessary to diagnose, treat, or mitigate infertility-related conditions, there’s a good chance you can write them off on your taxes, including:

• Acupuncture: You might get acupuncture to support your body during fertility treatments, as it can help with blood flow and hormonal balance. Acupuncture expenses qualify if they are part of a fertility treatment plan or are recommended by a doctor.
• Therapy for Fertility-Related Stress:  Mental health is so important on the fertility journey. Know that you can deduct expenses for therapy with a licensed professional, like a psychologist or psychiatrist. 
• Medications Prescribed for Infertility: All those meds you’re taking? Yes, they’re eligible, too. Hormonal treatments, antidepressants prescribed for fertility-related stress, and medications prescribed to support procedures like IVF or IUI apply. Over-the-counter medications or supplements are only deductible if prescribed by a doctor. 
• Other Eligible Support Services: You can also include other medical support services as tax deductions, such as physical therapy for fertility-related conditions, such as pelvic floor therapy. Visits to the chiropractor can also qualify.

Tax Deductions for Pregnancy Expenses

It’s possible to tax deduct some of the expenses you’ll incur during pregnancy, too. That doesn’t necessarily mean you can write off your nursery decor, of course, but deductions for prenatal care and postpartum therapy just may be fair game.

Prenatal Care and Education

Many of the tests, appointments, and procedures you experience in pregnancy are deductible, including: 

• OB-GYN or midwife visits 
• Ultrasounds 
• Prenatal vitamins (prescribed) 
• Other medications or supplements (prescribed)
• Classes on childbirth, newborn care, and breastfeeding held at or by a hospital (note: courses outside of a hospital or birth center may be eligible but require a note from your provider)

Note that prenatal vitamins and other supplements are deductible only if prescribed by a doctor or midwife to treat a specific condition (for example, anemia).

Labor and Delivery Costs

You can deduct costs associated with childbirth from your taxes, too, including: 

• Room and board, including fees for hospital stays during labor and delivery
• Anesthesia costs, including epidural or other pain management treatments
• Medical procedures, including C-sections or other necessary interventions
• Midwifery and birth center fees: You may be able to deduct fees associated with home and birth center care, too, depending on your situation

Postpartum Expenses

There are quite a few options for tax-deductible postpartum expenses, as well: 

• Lactation supplies: Breast pumps, milk storage bags, nipple cream and other supplies are included, but not bottles to feed or store milk. 
• Lactation consultants: The IRS does not address the use of lactation consultants, specifically, but these services may be considered eligible if a note from your provider or your infant’s pediatrician is provided.
• Pelvic floor physical therapy: The IRS does not call out pelvic floor physical therapy specifically, but notes that “you can include in medical expenses amounts you pay for therapy received as medical treatment.” 
• Birth control pills: To deduct this, you must include a prescription from your doctor, midwife, or nurse practitioner. 
• Support services: Acupuncture and therapy with licensed psychologists and psychiatrists are included postpartum, too. 

Make sure you keep receipts for everything, especially lactation equipment and consulting services. For other services, we recommend saving your referral letter and any documentation regarding your need for treatment, as well.

Understanding Itemized Deductions vs. Standard Deduction

Not all deductions are the same. There are two ways you can make deductions on your income tax return: you can itemize deductions or use the standard deduction. The standard deduction lowers your income by a fixed amount (it’s determined based on your filing status, age, and other criteria). Itemized deductions are made up of a list of all of your eligible expenses (like the ones we've already discussed in this post). 

The below may come in handy (however, this should not be taken as tax advice, always check with a licensed CPA or tax professional!):

What Are Itemized Deductions?

An itemized deduction is a specific expense that you can deduct from your taxes if you have documentation for it. These are usually listed individually on your tax return and are used if they are higher than the standard deduction. 

It’s worth noting that most taxpayers opt for the standard deduction since it’s often a pretty high amount and saves you from having to carefully track all of your expenses and save all of your receipts. However, in a year that involves quite a few fertility and/or pregnancy expenses, the itemized deduction might be worthwhile. For example, if you spend $10,000 on fertility treatments and your adjusted gross income is $50,000, you can deduct $6,250 (expenses above 7.5% of AGI), which may save more than the standard deduction.

Medical Expenses Threshold

To determine whether your expenses exceed 7.5% of your AGI:

• Locate your AGI on your tax form (Form 1040, Line 11
• Multiply that number by 0.075 to calculate the threshold. 
• Add up all of your medical expenses. 

If the amount exceeds the threshold, then anything above it is deductible from your taxes. For example, if your AGI is $50,000, the threshold is $3,750. If you had $10,000 worth of medical expenses, you can deduct $6,250.

To make sure you keep track of every single possible deductible expense, it’s key to have a solid tracking system. You can keep a spreadsheet, try an app or software and keep a folder with all receipts, or even open a separate bank account you use just for medical expenses. Organizing expenses by category, like treatments and prescriptions, will also help your calculations at the end of the year.

Eligible Medical Expenses You May Not Know About

Surprising Deductibles

• Pregnancy tests are deductible as long as they aren’t covered by insurance. For example, you could include the cost of ovulation strips and pregnancy tests in your medical expenses.
• Travel costs are deductible, too. This includes things like parking fees at your doctor’s office, mileage, and tolls. For example, if you traveled to a fertility clinic in the next state, you could claim the mileage for every trip.
• Expenses for medically-necessary home improvements count, too. For example, adding grab bars in your shower or widening doors for accessibility.

Expenses That Are Not Deductible

• Gym memberships 
• Non-prescribed vitamins
• Over-the-counter medications

Can You Claim an Unborn Baby as a Dependent?

Tax Rules for Newborn Dependents

Wondering if you can claim your newborn baby if they’re born late in the year? As long as they are born before December 31 at 11:59 pm, you can claim them! To claim your little one as a dependent on your taxes, your baby must be born alive during the tax year. After that, your child must be under 19 (or under 24 if a full-time student) to be claimed in subsequent tax years.

Filing for a Dependent Tax Credit

Claiming a dependent on taxes can significantly reduce your tax bill each year, depending on how many children you have and how you file.  For example, if you’re a single parent with one child who owes $3,000 in taxes and you qualify for the full $2,000 Child Tax Credit, your tax bill is reduced to $1,000.

To get the dependent tax credit, you’ll need your children’s social security numbers and proof of both your and their relationship and residency.

Eligibility Criteria for the Child Tax Credit

Most American parents are eligible for the credit. Your child must be under 17 at the end of the tax year, a US citizen or resident, and live with you for more than half the year (note that this is different than claiming them as a dependent in general). 

For the tax year 2023, for example, you qualify for the full amount of the credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).

The credit amount for the child tax credit is subject to income limits, with a maximum of $2,000 per qualifying child, and up to $1,600 of this amount may be refundable for lower-income families.

How to File Using Your Baby’s Social Security Number

Of course, the baby needs an SSN if you’re going to claim them! Generally, the hospital will ask if you want to apply for a social security number for your newborn when you fill out their birth certificate. You can also apply at a Social Security office (find one using this locator). Within a few weeks, you should receive a card with your child’s social security number via snail mail, which you’ll use to file your taxes.

Adoption Tax Credits and Pregnancy-Related Expenses

If you are growing your family through adoption, you aren’t eligible for tax deductions, but you are eligible for a tax credit. The difference is that a tax credit is used to directly reduce the amount of tax you owe. In 2024, you can receive a credit of $16,810 in qualified expenses, according to the IRS. 

The credit is nonrefundable, which means it's limited to your tax liability for the current tax year. However, because the credit is linked to the adoption of each child (not a set year), credit in excess of your tax liability can be carried forward for up to five years. So, if you can’t claim it all in one year, you may be able to over the next five years.

Adoption Expenses That Qualify for a Credit

Costs that qualify for the adoption tax credit include:

• Legal fees
• Agency fees
• Home study expenses
• Travel costs
• Court costs

You must use IRS form 8839 (Qualified Adoption Expenses) to claim the credit. 

What’s Not Covered Under Adoption Tax Credits?

Unfortunately, not all of the costs of adoption are covered under the tax credit. Expenses that are not eligible include:

• Surrogacy costs
• Biological parent costs
• Medical expenses for birth
• Any costs incurred adopting your spouse’s child
• Any expenses reimbursed by your employer

You should always consult with a seasoned tax professional for help with your individual situation. They can clarify qualifying expenses, especially if you’re adopting internationally. 

FAQs on Tax Deductions for Fertility and Pregnancy Expenses

Are IVF Expenses Tax Deductible?

Yes! You can deduct many of the costs associated with in-vitro fertilization from your taxes, including procedures and medications. 

Can I Deduct Costs for a Postpartum Doula?

Generally, no, but you might be able to if your postpartum doula’s services are deemed medically necessary. A note from your provider stating the medical necessity may help you if you are trying to deduct postpartum doula services. 

Are Health Insurance Premiums Tax Deductible?

Yes, if you pay for them on your own, they are deductible. This is because health insurance premiums are considered medical expenses. 

Can I Deduct Expenses for Pregnancy Tests?

Yes! You can deduct the costs of pregnancy tests from your taxes as long as they are not covered under your health insurance.

How Do I File for Pregnancy-Related Tax Deductions?

Pregnancy-related costs are considered medical expenses. You will need to itemize your expenses on the Schedule A portion of your taxes. To do this, you’ll need all receipts from expenses you may have. These are subject to an annual maximum of 7.5% of your annual adjusted gross income.

Remember that tax laws can change, and your deductions and credits will be based on your individual circumstances. Always verify current IRS guidelines and consult with your own dedicated tax professional for the most up-to-date and personalized advice about your taxes and your fertility, pregnancy, and postpartum expenses.