§ 213(d)(1)(A) in claiming IVF, surrogacy, and related costs are for the purpose of affecting any structure or function of the body. Rather the request relies on the second portion of I.R.C. The not identify a medical condition nor do taxpayers allege that expenses are incurred to treat a medical condition. In the case of the male couple here, the letter ruling explains:Įnerally, for an expense to be deductible, there must be a causal relationship between a medical condition and the expenditures incurred in treating the condition. Deductions have been confined strictly to expenses incurred primarily for the prevention or alleviation of a physical or mental defect or illness (see Regs. The medical expense deduction has historically been construed narrowly, the letter ruling notes. For example, vasectomies and operations that render a woman incapable of having children affect a structure or function of the body and thus would constitute deductible medical expenses. 213(d)(1) states that medical expenses consist of 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. 213(a) provides that taxpayers can deduct medical expenses to the extent the total exceeds 7.5% of the taxpayer's AGI.Īs far as what types of expenses are deductible is concerned, Sec. The total deductible amount varies from taxpayer to taxpayer, as it is based on their adjusted gross income (AGI). 213 allows taxpayers to claim unreimbursed out- of- pocket medical expenses as an itemized deduction against their taxable income in the tax year the costs are incurred. Any other medical expenses arising from the surrogacy.Legal and agency fees for the surrogacy and.Surrogate medical insurance related to the pregnancy.Egg retrieval and medical expenses of sperm donation.Medical expenses directly attributed to both spouses.213, that would allow them to deduct costs and fees such as: The taxpayers were seeking a ruling, under Sec. The egg donor was the sister of one of the partners, and an unrelated individual was the gestational surrogate. The letter ruling was requested by a legally married same- sex male couple wishing to have a child who would have as much representative DNA from the couple as possible. 12, 2021, the IRS ruled against the deductibility of medical expenses arising from a male couple's use of gestational surrogacy, in vitro fertilization (IVF) procedures, and related items. In Letter Ruling 202114001, issued on Jan. The process of having a child for a same- sex male couple can be extremely costly, which has led such couples to question whether these medical costs can be deducted on their tax return.
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