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New Member
posted Jun 3, 2019 11:37:28 AM

Is the cost of donor eggs for IVF tax-deductible?

I am buying the eggs through a cryobank, I am not dealing directly with the donor to pay her expenses.

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1 Best answer
Expert Alumni
Jun 3, 2019 11:37:30 AM

Yes, according to IRS' private letter ruling (click the link below), the cost of donor eggs are deductible as medical expenses under Internal Revenue Code Section 213(a).

According to IRS "A taxpayer may deduct expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, spouse, or dependent, to the extent the expenses exceed 7.5 percent of adjusted gross income, under § 213(a). Section 213(d)(1)(A) provides that medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body."

https://www.irs.gov/pub/irs-wd/0318017.pdf

3 Replies
Expert Alumni
Jun 3, 2019 11:37:30 AM

Yes, according to IRS' private letter ruling (click the link below), the cost of donor eggs are deductible as medical expenses under Internal Revenue Code Section 213(a).

According to IRS "A taxpayer may deduct expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, spouse, or dependent, to the extent the expenses exceed 7.5 percent of adjusted gross income, under § 213(a). Section 213(d)(1)(A) provides that medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body."

https://www.irs.gov/pub/irs-wd/0318017.pdf

New Member
Jun 3, 2019 11:37:31 AM

According to the IRS website, a PLR (private letter ruling) cannot be relied on as legal precedent by other taxpayers. So, the answer is likely incorrect without further proof of legal precedent. The original person asking the question should probably obtain their own PLR.

IRS website about PLRs: <a rel="nofollow" target="_blank" href="https://www.irs.gov/tax-exempt-bonds/teb-private-letter-ruling-some-basic-concepts">https://www.irs.gov/tax-exempt-bonds/teb-private-letter-ruling-some-basic-concepts</a>

Level 9
Jun 3, 2019 11:37:32 AM

@dallasarun   PLRs may not set a legal precedent, but it DOES show how the IRS interprets things.  Therefore it is grounds for filing a tax return that way.