It depends. Expenses paid to or for medical services rendered by physicians, surgeons, dentists, and other medical practitioners are deductible as “medical expenses” for income tax purposes. This would include the costs incurred for the purchase of donated sperm as part of a fertility treatment procedure, such as artificial insemination - IRS Medical Expenses. If the purpose is to have a child, yes. I have included as an attachment, the area of the IRS report regarding this information.
For medical expenses to be deducted on the tax return, however, you must itemize deductions on Schedule A, and your unreimbursed medical expenses must exceed 10 percent of your adjusted gross income (AGI). For detailed instructions on how to enter these medical expenses, select Entering Medical Expenses In TurboTax
For more information please see TurboTax FAQ on Medical Expenses below. Make sure to select 'see entire answer' to view the complete article.