Are Fertility Drugs Deductible?
When it comes to medical expenses, understanding the deductibility of fertility drugs can be complex. Under the guidelines set by the IRS, fertility treatment costs, including certain medications, may qualify as deductible medical expenses. However, there are specific criteria you need to meet to ensure your fertility drugs are eligible for tax deductions.
Qualified Expenses
Fertility drugs that are prescribed by a healthcare professional for the purpose of treating infertility are typically considered qualified medical expenses. This includes medications used for ovulation induction, as well as injectable hormones and other prescribed treatments aimed at promoting fertility.
Itemizing Deductions
To deduct fertility drugs from your taxes, you must itemize your deductions on Schedule A of your tax return. The total amount of your medical expenses must exceed 7.5% of your Adjusted Gross Income (AGI) for the tax year in question. Only the portion of your medical expenses above this threshold is deductible.
Documentation
Proper documentation is essential for claiming these deductions. Keep receipts and prescription records, as they will be necessary to substantiate your claims during tax filing or in the event of an audit.
Consultation Recommendation
Since tax laws can change frequently and may vary by state, consulting with a tax professional can provide personalized advice tailored to your financial situation, ensuring you maximize your deductions correctly.