Are Fertility Treatments and IVF Tax Deductible? (2025 IRS Rules)

Fertility treatments can cost tens of thousands of dollars, making them one of the most significant out-of-pocket medical expenses many couples ever face. Fortunately, the IRS has consistently held that fertility treatments — including IVF, egg freezing, and other reproductive technologies — qualify as deductible medical expenses. Here’s what you can deduct, what doesn’t qualify, and how to maximize the tax benefit in 2025.

Are Fertility Treatments Tax Deductible? Yes.

The IRS definition of a deductible medical expense covers costs paid “for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” Fertility treatments fall squarely within this definition — they affect a function of the body (reproduction) and treat a medical condition (infertility).

IRS Publication 502, which lists qualifying medical expenses, explicitly includes fertility enhancement procedures and operations. This has been confirmed in multiple IRS rulings and Tax Court decisions over the years.

What Fertility Expenses Qualify for the Deduction?

The following fertility-related costs are generally deductible as medical expenses:

In Vitro Fertilization (IVF) — The full cost of IVF cycles, including egg retrieval, fertilization, and embryo transfer
Fertility medications — Prescription drugs used for fertility treatment, such as hormone injections and stimulation medications
Intrauterine insemination (IUI) — The procedure and related medical costs
Egg freezing (oocyte cryopreservation) — For medical reasons (such as before cancer treatment), egg freezing is clearly deductible. The deductibility of elective egg freezing for future family planning is less clear and may depend on how the treatment is characterized.
Embryo storage fees — Annual storage fees for frozen embryos are generally deductible as they are directly related to the fertility treatment
Sperm banking costs — For medical reasons (e.g., before chemotherapy), sperm banking costs are deductible
Fertility testing and diagnosis — Semen analysis, hormonal testing, hysterosalpingography, and other diagnostic procedures
Reproductive endocrinologist visits — All doctor and specialist fees related to fertility treatment
Acupuncture for fertility — If performed by a licensed acupuncturist for the specific purpose of supporting fertility treatment, this may be deductible (acupuncture is generally deductible as a medical expense)

Donor Eggs, Sperm, and Surrogacy: More Complex Territory

The tax treatment becomes more complicated when third parties are involved:

Donor eggs and sperm: The costs paid to obtain donor eggs or sperm from an agency or fertility clinic are generally deductible for the recipient — these are part of the medical procedure to achieve pregnancy. However, fees paid directly to egg donors as compensation for their time and discomfort are more complicated and may not be fully deductible.

Surrogacy: Costs related to a surrogate’s medical care (including the surrogate’s pregnancy-related medical expenses that you pay) are generally not deductible by the intended parents. The deduction is limited to medical expenses for your own body or your dependents. The Tax Court has ruled against intended parents attempting to deduct surrogacy-related medical costs. Legal fees related to surrogacy are also not deductible.

Adoption-Related Medical Expenses: Different Rules

If you pursue adoption rather than (or in addition to) fertility treatment, there’s a separate Adoption Tax Credit worth noting. The adoption tax credit (up to $16,810 per child in 2025) can offset qualified adoption expenses, which is a different benefit from the medical expense deduction. The two cannot be double-counted for the same expenses.

The 7.5% AGI Threshold

Like all medical expense deductions, fertility treatment costs are only deductible to the extent your total qualifying medical expenses exceed 7.5% of your AGI. Given that IVF alone can cost $12,000–$25,000 or more per cycle, and many couples go through multiple cycles, fertility expenses often help clear the threshold even for higher-income taxpayers.

For example, with an AGI of $120,000, your 7.5% threshold is $9,000. If you spent $18,000 on IVF and $4,000 on related medications, your total qualifying medical expenses are $22,000 (assuming these were out-of-pocket costs not covered by insurance or an FSA/HSA). Your deductible amount is $13,000 ($22,000 minus $9,000) — a meaningful deduction that could save thousands in taxes.

You Must Itemize

Fertility treatment costs are part of the Schedule A medical expense deduction, so you must itemize deductions rather than take the standard deduction to benefit. Given the magnitude of fertility treatment costs, many couples going through IVF find that their total itemized deductions — including fertility costs, mortgage interest, state and local taxes, and other medical expenses — exceed the standard deduction.

FSA and HSA: Additional Tax Benefits

If you have access to a Flexible Spending Account (FSA) or Health Savings Account (HSA), you can use those pre-tax funds to pay for many fertility treatment costs — including IVF, medications, and diagnostic testing. This is often a better immediate tax benefit than the itemized deduction because you save taxes on every dollar spent, not just the amount above the 7.5% floor.

However, you can’t double-dip: costs paid from an FSA or HSA cannot also be deducted on Schedule A. Plan your use of tax-advantaged accounts and potential itemized deductions together to maximize your overall tax savings.

Record-Keeping for Fertility Treatment Deductions

Because fertility treatment costs can be large and may prompt IRS scrutiny, good documentation is essential. Keep: all itemized invoices from your fertility clinic; pharmacy receipts for fertility medications; insurance Explanation of Benefits statements showing what was and wasn’t covered; records of FSA/HSA reimbursements (to ensure you don’t deduct reimbursed amounts); and doctor’s notes or medical records connecting the treatments to a diagnosed fertility condition.

The Bottom Line

Fertility treatments — including IVF, IUI, fertility medications, and related diagnostic costs — are deductible medical expenses under federal tax law. Given the high cost of these treatments, many couples going through fertility treatment will find that their medical expenses exceed the 7.5% AGI threshold, making itemizing worthwhile. Surrogacy costs are the main exception to watch out for, as those are generally not deductible for the intended parents. If you’re facing significant fertility treatment expenses, working with a tax advisor to optimize between FSA/HSA contributions and the Schedule A deduction can result in substantial tax savings.