tax question

thebabyproject · 09-11-2006, 11:26 AM

Ok, girls, I have a tax deduction question.

What, if any, of the egg donor cycle is tax deductible as a medical expense?

I will probably call the IRS eventually anyway, but I'm one of these planning people that tries to figure out what our taxes will be.

I assume anything that gets billed through the dr. is considered medical. I'm also assuming the $6K in donor compensation and the $4K in agency fees is not, but I wondered what others knew. Both the compensation and the fees I can justify in my head as a medical expense because I'd be using the eggs for a medical reason, but then I figure the IRS is probably fairly archaic in their structuring of these things.

Just wondering.

Emily

Abilene · 09-11-2006, 11:40 AM

Funny you would post this. I just asked the same question today of my accountant and he is getting back to me with an answer. I'll let you know what I find out.

Abilene

cs1984cs · 09-11-2006, 12:56 PM

I was thinking about it the other day. Looking forward to your post and thanks!

Abilene · 09-11-2006, 01:51 PM

Ladies:
Just spoke to the CPA and he says IVF is a deductable expense, but has to do more research specifically on DE.
I'll keep you posted.

Abilene

**BC-donor** · 09-12-2006, 09:03 AM

You can claim ALL of your expenses related to your DEIVF cycle. You can claim all of the meds, mileage to & from your RE. If you're going out of town for your RE you can claim your hotel & airfare too.

You'll need to itemize your deductions, but they're definitely able to be claimed. If you do a search here you should find a thread that was started several months ago where someone had actually found something on the IRS website about what you can claim.

You can claim anything over 7.5% of your Adjusted Gross Income.

I'll try to find that thread for you.

Ok, found it. Here's the link. http://www3.fertilethoughts.com/foru...t=Income+taxes There is some good info there, as well as a couple links to web sites discussing what you can claim.

Good luck! We always got so much back when we did our cycles & we saved those returns for future attempts!

cs1984cs · 09-14-2006, 04:46 PM

Abilene,

regardless of those links, if you are still pursuing getting the word from you accountant, I'd be curious to hear what he had to say.... that's if I still have an ED. Guh

Abilene · 09-18-2006, 05:33 AM

Still waiting- they (CPA's) are never very fast when its not money in their pocket at that very moment. However, I like this guy- saved me 10K last year. It will be worth the wait.

Abilene

**BC-MAV** · 09-18-2006, 10:09 AM

You can deduct any medical expenses done for you and on you but if it's a procedure done on ANOTHER person then those aren't deductable! I pay medical expenses for my dog's cataract surgery, lens implant, RX eye drops for glaucoma, etc... and she is a part of our family (not human) but I CAN NOT deduct her expenses on our taxes. She is NOT related to us! You can not deduct medical expenses done on a 3rd party!!!

fetch · 09-18-2006, 08:34 PM

Unfortunate for us, DI sperm is not a medical expense covered for us in Canada. We spent $7k for that alone out of pocket. The actual IUI for us was covered, however, our clinic did the procedure at no cost (must have been out of pitty although that would have only cost us $250 anyway).

cs1984cs · 09-18-2006, 10:15 PM

BC-MAV,

I looked at the links that BC-donor gave us. Based on that letter on the IRS site, I am understanding that the ED's expenses including all the lawyer and agency fees ARE deductible. I would consider the ED a third party; however, here the IRS is overlooking that and saying that so long as the money was spent towards the IMs successful IVF, then it's okay to deduct those expenses.

The question is, what if the IVF is not successful... I have to go back and read it again. Ack!

09-11-2006, 11:26 AM	#1 (permalink)
thebabyproject 1000-4999 post queen of hearts Join Date: Jul 2005 Location: South of Atlanta, GA Posts: 3,503 Blog Entries: 639	tax question Ok, girls, I have a tax deduction question. What, if any, of the egg donor cycle is tax deductible as a medical expense? I will probably call the IRS eventually anyway, but I'm one of these planning people that tries to figure out what our taxes will be. I assume anything that gets billed through the dr. is considered medical. I'm also assuming the $6K in donor compensation and the $4K in agency fees is not, but I wondered what others knew. Both the compensation and the fees I can justify in my head as a medical expense because I'd be using the eggs for a medical reason, but then I figure the IRS is probably fairly archaic in their structuring of these things. Just wondering. Emily __________________ Severe MF w/SCSA 47% & DOR @ 32 DE IVF ICSI TESA#2 worked! Beta#1 3.5; Beta#2 13.8; Beta#3 58.6 Bethany Joyce born 5/16/08

09-12-2006, 09:03 AM	#5 (permalink)
BC-donor 500-599 post 7 of hearts Join Date: Jan 2005 Posts: 587	You can claim ALL of your expenses related to your DEIVF cycle. You can claim all of the meds, mileage to & from your RE. If you're going out of town for your RE you can claim your hotel & airfare too. You'll need to itemize your deductions, but they're definitely able to be claimed. If you do a search here you should find a thread that was started several months ago where someone had actually found something on the IRS website about what you can claim. You can claim anything over 7.5% of your Adjusted Gross Income. I'll try to find that thread for you. Ok, found it. Here's the link. http://www3.fertilethoughts.com/foru...t=Income+taxes There is some good info there, as well as a couple links to web sites discussing what you can claim. Good luck! We always got so much back when we did our cycles & we saved those returns for future attempts! __________________ Multiple DE cycles, finally successful Last edited by BC-donor; 09-12-2006 at 09:06 AM.

09-18-2006, 08:34 PM	#9 (permalink)
fetch 1000-4999 post queen of hearts Join Date: Jan 2005 Location: Toronto Posts: 2,255	Unfortunate for us, DI sperm is not a medical expense covered for us in Canada. We spent $7k for that alone out of pocket. The actual IUI for us was covered, however, our clinic did the procedure at no cost (must have been out of pitty although that would have only cost us $250 anyway). __________________ ME (34), DH (39) Diag = both female & male factor IUI #1&2: Jan/05 = pg! IUI #3: Jun/07 = m/c IUI #4 to #12: Sept-May/08 = bfn Surgeries: May & Aug/08 - Lap, Hystero, D&C IVF #1: Oct/08 - BFP! Beta#1 = 122 / Beta#2 =366 / Beta #3 =697, Beta #4 =3666 (20dp3dt), EDD 07-04-09 OHSS

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09-11-2006, 11:40 AM	#2 (permalink)
Abilene 200-299 post 4 of hearts Join Date: Dec 2004 Posts: 234	Funny you would post this. I just asked the same question today of my accountant and he is getting back to me with an answer. I'll let you know what I find out. Abilene

09-11-2006, 12:56 PM	#3 (permalink)
cs1984cs Registered User Join Date: May 2006 Posts: 2,198	I was thinking about it the other day. Looking forward to your post and thanks!

09-11-2006, 01:51 PM	#4 (permalink)
Abilene 200-299 post 4 of hearts Join Date: Dec 2004 Posts: 234	Ladies: Just spoke to the CPA and he says IVF is a deductable expense, but has to do more research specifically on DE. I'll keep you posted. Abilene

09-14-2006, 04:46 PM	#6 (permalink)
cs1984cs Registered User Join Date: May 2006 Posts: 2,198	Abilene, regardless of those links, if you are still pursuing getting the word from you accountant, I'd be curious to hear what he had to say.... that's if I still have an ED. Guh

09-18-2006, 05:33 AM	#7 (permalink)
Abilene 200-299 post 4 of hearts Join Date: Dec 2004 Posts: 234	Still waiting- they (CPA's) are never very fast when its not money in their pocket at that very moment. However, I like this guy- saved me 10K last year. It will be worth the wait. Abilene

09-18-2006, 10:09 AM	#8 (permalink)
BC-MAV Board Coordinator for Surrogacy BB Join Date: Jan 2002 Location: way down yonder ... Posts: 29,651 Blog Entries: 50	You can deduct any medical expenses done for you and on you but if it's a procedure done on ANOTHER person then those aren't deductable! I pay medical expenses for my dog's cataract surgery, lens implant, RX eye drops for glaucoma, etc... and she is a part of our family (not human) but I CAN NOT deduct her expenses on our taxes. She is NOT related to us! You can not deduct medical expenses done on a 3rd party!!!

09-18-2006, 10:15 PM	#10 (permalink)
cs1984cs Registered User Join Date: May 2006 Posts: 2,198	BC-MAV, I looked at the links that BC-donor gave us. Based on that letter on the IRS site, I am understanding that the ED's expenses including all the lawyer and agency fees ARE deductible. I would consider the ED a third party; however, here the IRS is overlooking that and saying that so long as the money was spent towards the IMs successful IVF, then it's okay to deduct those expenses. The question is, what if the IVF is not successful... I have to go back and read it again. Ack!