Hey friends! If you’re navigating the often pricey world of fertility treatments, you might find some surprising relief in the form of tax deductions. That’s right; Uncle Sam might be able to help take a bit of the sting out of those costs!
For those of you who filed your tax returns for 2021, there’s an IRS rule that allows you to itemize and deduct qualified, unreimbursed medical expenses that go beyond 7.5% of your adjusted gross income. This means that if you’ve spent a significant amount on fertility treatments, you could be looking at a nice tax refund.
Here are five simple tips to make the most of those deductions:
- Gather All Your Receipts
Make sure to keep every receipt and invoice, even the ones you think you won’t need. You may be surprised by what qualifies as deductible expenses. Fertility treatment fees, laboratory fees, co-pays, and even travel costs related to your treatment can all add up. For a full list of deductible medical expenses, check out the IRS website. - Keep a Detailed Expense Log
Documenting when each expense occurred can be very helpful, especially if the IRS reaches out for verification. They may question why your medical expenses are higher than usual, so being organized can save you a lot of headache. - Store Your Records Safely
The IRS suggests keeping your tax returns and supporting documents for three years after filing. If you’ve under-reported income, they can go back six years. If you filed fraudulently, keep those records indefinitely—you never know! - Forgot to Claim Last Year’s Fertility Expenses?
No need to worry! If you missed out on deducting those expenses last year, you can file an amendment using IRS Form 1040X, as long as it’s within three years of your original filing. - Consider FSAs and HSAs
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are great ways to pay for out-of-pocket medical expenses using pre-tax dollars. This can help offset your fertility treatment costs even further!
Whether you’re still exploring your options, currently in treatment, or wrapping things up, understanding how to leverage these tax deductions could save you a significant amount of money. It’s worth doing a bit of paperwork to possibly save thousands in taxes. And hey, while you’re at it, cozy up with a bowl of buffalo chili for some comfort food during this journey!
For those interested in home insemination, be sure to check out resources like this one on IUI or consider using a Cryobaby Home IntraCervical Insemination Syringe Kit for your needs.
Summary:
Tax deductions can significantly ease the financial burden of fertility treatments. By keeping detailed records, utilizing available resources, and taking advantage of tax rules, you can save money and focus more on your path to parenthood.