This Act allows taxpayers to deduct certain expenses related to assisted reproduction, such as IVF and surrogacy, as medical expenses.
Adam Schiff
Senator
CA
The Equal Access to Reproductive Care Act amends tax law to explicitly define expenses related to assisted reproduction as deductible medical expenses. This change allows taxpayers to potentially deduct costs associated with treatments like IVF, IUI, and surrogacy for themselves, their spouse, or a dependent. These provisions apply to tax years beginning after the Act's enactment.
IVF, Surrogacy, and Fertility Treatments Now Count as Deductible Medical Expenses Under New Tax Act
The newly proposed Equal Access to Reproductive Care Act is pretty straightforward: it updates the tax code to explicitly classify assisted reproduction expenses as deductible medical care. If you’ve ever looked into IVF, IUI, or surrogacy, you know these procedures come with a hefty price tag—often tens of thousands of dollars. This bill aims to provide some financial relief by treating these costs the same way the IRS treats a broken leg or a necessary surgery under Section 213(d) of the Internal Revenue Code.
The Fine Print on Fertility Costs
What exactly counts as “assisted reproduction” under this bill? The language is broad and covers the procedures most people associate with building a family this way: in vitro fertilization (IVF), intrauterine insemination (IUI), egg and sperm donation, and both traditional and gestational surrogacy arrangements. This is important because it removes any ambiguity; the law now clearly states these expenses are eligible for deduction if you itemize your taxes. This change applies to tax years starting after the Act becomes law, so it’s not retroactive for last year’s filing.
Who Gets the Tax Break, and Who Doesn't
For those currently navigating the expensive world of fertility treatments, this is a significant win. If you’re paying $20,000 or more for an IVF cycle, being able to count that toward your medical expense deduction threshold can save you real money. The deduction can be claimed for expenses related to yourself, your spouse, or a dependent. There is one key constraint, though: you can only claim the expenses if you, your spouse, or your dependent intend to take legal custody or responsibility for the child born as a result of the process (SEC. 2). This means if you’re paying for a friend’s treatment as a gift, those costs won't be deductible for you.
It’s crucial to remember that this benefit only applies to people who itemize their deductions. If you’re like the majority of taxpayers who take the standard deduction, this specific change won’t lower your tax bill. While the bill makes assisted reproduction expenses tax-deductible, it doesn't make them accessible to everyone; you still have to have enough medical expenses overall to exceed the current AGI floor (7.5% of your Adjusted Gross Income) before you can start deducting anything.
Making Complex Family Planning Manageable
By explicitly defining these costs as medical care, the bill offers a clear benefit to families facing high out-of-pocket costs for fertility treatments. It essentially acknowledges that assisted reproduction, which is often medically necessary for many people to have children, deserves the same tax consideration as other major medical procedures. For a couple saving up for their third round of IVF, this tax clarity and potential deduction could make a difference in whether they can afford to continue their family-building journey.