Infertility can be one of the most the serious crisis any married couple would hope to avoid. But if it is mountain you and your partner must climb, please realize that you are not alone. And there are ways to plan and help mitigate the costs of treatment.
In the article Sternberg offers some important tax considerations. For example there is always the possibility of deducted costs of treatment on Schedule A (assuming they exceed 10% of your adjusted gross income). However, she also stresses the need for an flexible spending account which can be funded with pre-tax dollars as another method of lowering the burden and overall costs of treatment.
Money taken from an employee’s paycheck and put into an FSA is not subject to payroll taxes, resulting in significant tax savings. Fertility treatments, like all medical and dental expenses, can be deducted from Schedule A if they exceed 10 percent of a couple’s annual gross adjusted income.
She offers a quick refresher on other deductions. If you find yourself in this situation, there’s nothing to be ashamed of. Consider some of these suggestions to help make the financial end of the situation a bit easier. As always please check with your accountant or qualified practitioner before acting on any tax advice and to see what’s best for your circumstances.
Source: Baby on Board? 7 Tax Tips for Expectant (and Hoping to be Expectant) Clients – AICPA Insights