| Fertility treatment costs can seem daunting, | | | | gross income will be subtracted from the total of |
| especially if your employer's health insurance does | | | | your total un-reimbursed medical expenses to |
| not provide coverage for these procedures - as | | | | determine your amount of tax savings. |
| many do not. There are a handful of states that | | | | For example, if your adjusted gross income is |
| mandate insurers to cover infertility treatments, for | | | | $100,000 this means no tax savings on the first |
| companies with more than 50 employees. | | | | $7,500 of un-reimbursed medical expenses. |
| The majority of couples live in a state without a such | | | | Use a Flexible Spending Account for Bigger Savings |
| a mandate, or work for employers with less than 50 | | | | A Healthcare Flexible Spending Account (FSA) allows |
| employees. If you fall into this category, Uncle Sam is | | | | you to realize tax savings on your very first dollar of |
| willing to make your cost of infertility procedures | | | | infertility treatment costs, plus you may also reduce |
| more affordable. | | | | the amount of State, and FICA taxes you pay. |
| Let the IRS Cut Infertility Rates | | | | For example, you are in the 25% federal tax bracket, |
| Un-reimbursed medical expenses such as infertility | | | | 5% state income tax bracket, and you pay 7.65% in |
| treatment costs are tax deductible. You can discount | | | | FICA taxes. You contribute $5,200 to the FSA, and |
| infertility procedure prices by offsetting tax savings. | | | | use the funds to settle your infertility treatment |
| You have two options, but one is clearly superior: | | | | costs. You will lower your tax bill by $1,957. |
| Take an itemized medical deduction on your IRS | | | | That is a nearly 38% reduction in your cost of IVF, |
| Schedule A. Beware - the first 7.5% of your adjusted | | | | IUI or other treatment. Thank you IRS! |