Egg donation costs. (From The IRS).According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Letter Ruling 200318017, a woman who cannot conceive a child using her own eggs may claim a medical deduction for the costs of obtaining an egg donor An egg donor is a woman who provides usually several eggs (ova, oocytes) for another person or couple who want to have a child. Egg donation involves the process of in vitro fertilization as the eggs are fertilized in the laboratory. , including associated legal costs. In the ruling, a woman unsuccessfully underwent repeated assisted reproductive technology Assisted reproductive technology (ART) is a general term referring to methods used to achieve pregnancy by artificial or partially artificial means. It is reproductive technology used in infertility treatment, which is the only application routinely used today of procedures to enable her to conceive using her own eggs. She now wants to attempt pregnancy using donated eggs. While her health plan will pay the costs of fertilizing and transferring an egg or embryo to her, it will not cover the costs of obtaining an egg donor; she has to pay those expenses herself. The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. held that the following are medical expenses for Sec. 213 purposes: 1. The egg donor's fee for her time and expense in following proper procedures to ensure successful egg retrieval. 2. The agency fee for recruiting the donor and coordinating the transaction between the donor and the recipient. 3. The cost of the donor's pre-procedure medical and psychological testing psychological testing Use of tests to measure skill, knowledge, intelligence, capacities, or aptitudes and to make predictions about performance. Best known is the IQ test; other tests include achievement tests—designed to evaluate a student's grade or performance and insurance for any post-procedure medical or psychological assistance the donor may need. 4. Legal fees for preparing a contract between the recipient and the donor. The IRS concluded that the egg recipient could deduct all of the above-listed costs as medical expenses. According to the ruling, the costs of a procedure facilitating pregnancy by overcoming infertility, and expenses that prepare for and are directly related to this procedure, are deductible as medical expenses. The costs of obtaining an egg donor (including the donor's expenses) are directly related and preparatory to the receipt of the donated egg or embryo and can be deducted by the recipient as medical expenses. Related legal expenses can be deductible medical expenses if they bear a direct or proximate proximate /prox·i·mate/ (prok´si-mit) immediate or nearest. prox·i·mate adj. Closely related in space, time, or order; very near; proximal. proximate immediate; nearest. relationship to the provision of medical care. Costs directly related to obtaining an egg donor are deductible as medical expenses whether or not the attempt to conceive succeeds. Taxpayers who attempt to conceive using donated eggs and who participate in company medical flexible spending accounts flexible spending account, n an employee reimbursement account primarily funded with employee-designated salary reductions. Funds are reimbursed to the employee for health care (medical and/or dental), dependent care, and/or legal expenses and are are now eligible for reimbursement from the plan, thus giving them the equivalent of a deduction without the adjusted-gross-income limits. |
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