Elective Egg Freezing - Taxed as Income

[doglover19]

I am a single female who completed an egg retrieval cycle in order to freeze eggs for future use. I understand that this was an elective procedure as I do not (yet) have an infertility diagnosis. Fortunately, my employer has a reimbursement program, so I was able to submit my expenses to be reimbursed. However, the reimbursement was only about 60% of what I requested, and the rest was held out in taxes. When I received my W-2, the entire amount I requested for reimbursement was included as part of my taxable income. How can the same money be taxed twice? Especially when the money was mine to begin with and it was not actually earned income.

I know this is a hotly debated topic and the tax implications vary from one individual to the next. I'm looking for some general information and I appreciate any insight! 

[MonikaK1]

If your employer added amounts to your W-2 that exceeded the amount of your reimbursement, contact them for an explanation and corrected W-2, if applicable.

If you have medical expenses that are reimbursed by a health reimbursement arrangement, you can't include those expenses in your medical expenses.

If you are reimbursed more than your medical expenses, you may have to include the excess in your income.

You can include in medical expenses the unreimbursed cost of the following procedures performed on yourself, your spouse, or your dependent to overcome an inability to have children.

Procedures such as in vitro fertilization (including temporary storage of eggs or sperm).

Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children.

See IRS Publication 502 for more information on deductible medical expenses.

See this TurboTax article for more information on Health Savings Accounts, if applicable.