Donor sperm was purchased from a cryobank and I would like to claim that as a medical expense. The IRS website is not clear on whether this can be tax deductible. Some forums I have read mentioned that the reason for the sperm may determine that answer, i.e. it is out of necessity because of male partner infertility issues, etc. Since we are in a female same sex relationship and a male partner is not the issue here, I’d like to know if the donor sperm can still be claimed as a medical expense?
You are correct that it is unclear in the IRS Publication. That said, I would include it as a deductible medical expense for similar reasoning and you have read in the forums. It is a medically necessary expense in order to treat a medical concern.
My basis for saying this is because fertility treatments are deductible, including the cost of donor sperm. So, if donor sperm is required for you to have children, it is a valid and medically necessary expense.
For medical expenses to be deducted on the tax
return, you must itemize deductions on Schedule A, and your unreimbursed
medical expenses must exceed 10 percent of your adjusted gross income (AGI).
Then, you can only deduct the amount by which your unreimbursed medical
expenses exceed this 10 percent threshold (7.5% of AGI for age 65 and older
until 2017).
Where to enter medical expenses in TurboTax: While inside the software and working on your return, type medical expenses, sch a in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to medical expenses, sch a. Select that to get to the general area.
Please see the following link for a comprehensive list of deductible medical expenses. IRS Medical Expenses