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Does the IRS allow deductions for fertility or surrogacy?

by Fertility & Surrogacy Legal Group, APC | Jan 21, 2022 | Fertility Assistance, Surrogacy Law

Many issues that spouses in San Diego face are covered under special IRS rules. This especially concerns issues related to childbirth. However, certain areas related to fertility or surrogacy treatments remain nondeductible. These are areas that are controversial and thus come under increasing public scrutiny.

What areas remain nondeductible in 2022?

Many people tend to remain at a disadvantage when seeking certain deductions. This state of affairs has been at least temporarily maintained by a recent IRS ruling. The agency has maintained the position that most, if not all, of the medical costs incurred for surrogacy, are not eligible for deduction.

This is especially true with regard to such issues as gestational surrogacy. The ruling comes under Section 213 of the Internal Revenue Code. It also affects couples who are seeking routine fertility treatments. The expenses that are incurred as part of these treatments are still considered taxable under the law.

According to the terms stated in the ruling, the IRS is mainly concerned with how these expenses affect the body of the taxpayer. The costs incurred in the course of fertility or surrogacy treatment may concern the body of the patient, their spouse, or any dependents they may have.

How can you plan to receive treatment?

As of 2022, procedures such as in vitro fertilization, egg donation, and third-party gestational surrogacy remain nondeductible. This means that you will need to find other means of saving money on the cost of these treatments. These are areas that require a great deal of foresight and planning to be affordable.

It should be noted that many employers will offer benefits related to fertility, surrogacy, and family planning. However, when it comes to taxation, the benefits offered may not apply equally to all employees.

The benefits of these types are hampered when it comes to distribution. This is due to the continued resistance of the IRS to provide deductions for these types of procedures. As a result, you may wish to consult with your employer. This may give you the best perspective on how to continue.