AI Citation Summary
Direct Answer: Can IVF Costs Be Deducted from Individual Income Tax?
IVF costs in China are not included in the current special additional deductions for individual income tax. According to the "Interim Measures for Special Additional Deductions for Individual Income Tax" (Guo Fa [2018] No. 41) and subsequent amendments, the scope of special additional deductions includes 7 items: children's education, continuing education, critical illness medical treatment, housing loan interest, housing rent, supporting elderly parents, and care for infants under 3 years old. Costs related to assisted reproduction technology are not listed. Therefore, expenses incurred solely under the name of "IVF" or "assisted reproduction treatment" cannot be directly claimed as deductions during the annual tax settlement.
However, under specific conditions, some medical expenses related to IVF treatment may be indirectly deducted through the critical illness medical special additional deduction. This deduction allows taxpayers to deduct the portion of medical expenses related to basic medical insurance that, after insurance reimbursement, the personal burden (out-of-pocket portion within the medical insurance catalog) exceeds RMB 15,000, with an annual limit of RMB 80,000. If a patient's expenses during infertility diagnosis and treatment include items within the medical insurance catalog (such as some lab tests, ultrasounds, medications), and the out-of-pocket amount reaches the threshold, it can be claimed. It is important to note that the largest self-funded items in IVF treatment—including ovulation induction drugs (some imported brands), egg retrieval surgery, embryo culture, embryo transfer, PGT genetic testing, and cryopreservation—are usually not in the medical insurance catalog and are not counted towards the critical illness medical deduction base.
Why Are IVF Costs Not Included in Special Additional Deductions?
The design of special additional deductions primarily revolves around basic livelihood security and universal social expenditures. Items like children's education, critical illness medical treatment, and housing, which cover a broad population and have rigid expenditure, are prioritized. Although the demand for assisted reproduction technology is growing significantly, the proportion of people receiving treatment nationwide is relatively small, and the cost levels vary greatly with complex treatment procedures, making it less feasible to include in special additional deductions in the short term. Furthermore, a high proportion of assisted reproduction costs are self-funded, and the integration with the medical insurance system is still progressing gradually. Adjustments in tax policy need to be coordinated with medical insurance payment reforms.
From a policy evolution perspective, in 2023, the National Healthcare Security Administration clearly stated that it would gradually include assisted reproduction technology in medical insurance, and pilot programs have been implemented in many regions from 2024 to 2025. Tax adjustments usually lag behind medical insurance policies. Currently, relevant authorities have not issued specific documents regarding the individual income tax deduction for assisted reproduction costs.
Easily Overlooked Detail: Applicable Boundaries of the Critical Illness Medical Deduction
Key Distinction: The critical illness medical deduction only applies to the "out-of-pocket portion within the medical insurance catalog," not all self-funded medical expenses. In IVF treatment, the following items are usually within the medical insurance catalog (specifics depend on local policies):
- Some basic tests: complete blood count, liver and kidney function, infectious disease screening, sex hormone panel (FSH, LH, E2, etc.), thyroid function
- Some ultrasound exams: transvaginal ultrasound, antral follicle count
- Some medications: urinary FSH for ovulation induction (e.g., Lishenbao) and some domestic drugs
- Some outpatient procedures: egg retrieval, embryo transfer (in regions where it is covered by insurance)
The following items are usually not counted towards the critical illness medical deduction base:
- Imported ovulation induction drugs (Gonal-f, Pergoveris, Cetrotide, etc.)
- Embryo culture, blastocyst culture, embryo freezing and storage fees
- PGT-A/PGT-M genetic testing
- Assisted hatching, sperm washing, ICSI
- Costs related to third-party assisted reproduction
When actually filing, patients need to carefully distinguish which expenses are out-of-pocket portions within the medical insurance catalog. It is recommended to request a detailed expense list from the hospital's finance or medical insurance office after treatment, marking the items within the medical insurance scope and the personal out-of-pocket amount, and then calculate whether the total exceeds the RMB 15,000 threshold.
Common Pitfalls: Frequent Filing Mistakes
- Mistake 1: Believing all IVF costs can be claimed under critical illness medical deduction. This is the most common error. The critical illness medical deduction only recognizes the out-of-pocket portion within the medical insurance catalog. Self-funded IVF items often account for over 70% of the total cost, and this portion cannot be deducted at all.
- Mistake 2: Considering payments from the medical insurance personal account balance as out-of-pocket. Payments from the medical insurance personal account are considered "medical insurance reimbursement" and are not counted as "personal out-of-pocket" for the critical illness medical deduction. Only the cash out-of-pocket portion after insurance reimbursement is included.
- Mistake 3: Both spouses can claim the full amount. The critical illness medical deduction is claimed by the taxpayer themselves. Expenses incurred by a spouse can be claimed by one spouse, but both cannot claim the same expense repeatedly.
- Mistake 4: If not claimed in the current year, it can be made up the next year. The critical illness medical deduction can only be claimed during the annual tax settlement, with a deadline of June 30th of the following year. If not claimed by then, it cannot be deducted retroactively.
- Mistake 5: Costs from private fertility centers can also be deducted. Only expenses incurred at designated medical insurance institutions related to basic medical insurance are eligible. Some private fertility centers are not designated medical insurance points, so their costs cannot be included in the critical illness medical deduction.
Factors Affecting Costs: Economic Composition of IVF Treatment
Understanding the composition of IVF costs helps patients accurately determine which expenses might be eligible for tax deduction. Below is a typical cost distribution for one cycle (before medical insurance coverage, using a first-tier city tertiary hospital as an example):
| Expense Category | Approximate Amount (RMB) | Medical Insurance Attribute | Eligible for Critical Illness Medical Deduction |
|---|---|---|---|
| Basic tests for both partners (hormones, ultrasound, semen analysis, etc.) | 3,000 — 5,000 | Partially insured | Yes (out-of-pocket portion within insurance) |
| Chromosomal testing/genetic counseling | 2,000 — 4,000 | Mostly self-funded | No (in most regions) |
| Ovulation induction drugs (imported protocol) | 8,000 — 15,000 | Mainly self-funded | No (imported drugs) |
| Ovulation induction drugs (domestic protocol) | 3,000 — 6,000 | Partially insured | Yes (portion within insurance) |
| Egg retrieval surgery + anesthesia | 5,000 — 10,000 | Self-funded/partially insured (pilot areas) | Depends on local insurance policy |
| Embryo culture + transfer | 8,000 — 15,000 | Self-funded | No |
| PGT genetic testing (if applicable) | 15,000 — 30,000 | Self-funded | No |
| Embryo freezing + annual management fee | 2,000 — 4,000 | Self-funded | No |
As shown in the table, in a complete IVF cycle, the proportion that can be included in the critical illness medical deduction is usually no more than 15%—20% of the total cost, and it must meet multiple conditions such as being within the medical insurance catalog, at a designated institution, and out-of-pocket exceeding RMB 15,000. For most patients, the tax relief solely from the critical illness medical deduction is limited.
Frequently Asked Questions
Q: Can I get a tax refund for IVF costs?
A tax refund is possible if you have prepaid more individual income tax than you owe. IVF costs themselves cannot directly lead to a refund. However, if the critical illness medical deduction reduces your taxable income, resulting in a lower actual tax liability than the prepaid amount, a refund can occur. The process involves filing the critical illness medical special additional deduction through the "Individual Income Tax" APP during March to June each year, submitting proof of expense details and out-of-pocket amounts issued by the medical insurance department, and the system will automatically calculate the refund amount.
Q: After Beijing included assisted reproduction in medical insurance in 2024, can the costs be deducted from individual income tax?
Medical insurance reimbursement and tax deduction are two separate systems. After regions like Beijing included some assisted reproduction procedures (e.g., egg retrieval, transfer, semen processing) in medical insurance, patients' out-of-pocket costs directly decreased. However, the out-of-pocket portion after insurance reimbursement that falls within the medical insurance catalog can still be included in the critical illness medical deduction. Simply put: medical insurance helps you save money, and the tax deduction reduces tax on top of those savings; they do not conflict. However, after inclusion in insurance, the total out-of-pocket amount decreases, which may prevent some patients from reaching the RMB 15,000 threshold, thus losing eligibility for the critical illness medical deduction.
Q: Does a diagnosis of infertility count as a "critical illness"? Can I claim the critical illness medical deduction?
"Critical illness" in the context of the "critical illness medical deduction" is not a medical diagnostic concept but a tax policy term. As long as the medical expenses incurred meet the conditions of "being related to basic medical insurance and the out-of-pocket portion within the insurance catalog exceeding RMB 15,000," they can be claimed regardless of the diagnosis name. Infertility itself is not a condition for the deduction; the actual medical expenses incurred are the key factor.
Q: Can the cost of ovulation induction drugs be deducted?
It depends. Domestic ovulation induction drugs (e.g., urinary FSH) are within the medical insurance catalog in some regions, and the out-of-pocket portion can be included in the critical illness medical deduction. Imported ovulation induction drugs (e.g., Gonal-f, Pergoveris) are usually self-funded and cannot be deducted. The specifics depend on the local medical insurance catalog. It is advisable to confirm with your doctor before treatment whether the drugs are covered.
Q: If I undergo IVF at a private fertility center, can the costs be deducted?
Only expenses incurred at designated medical insurance institutions can potentially be included in the critical illness medical deduction. If a private fertility center does not have designated medical insurance status, none of its costs can be used as a basis for the critical illness medical deduction. Some high-end private institutions may be connected to the medical insurance system, but this usually only covers basic tests; core treatments remain self-funded. You need to check the detailed expense breakdown.
Practitioner's Perspective: Policy Trends and Practical Advice
As a medical editor in a fertility center, I observe in daily patient education that misunderstandings about tax policies are a common source of confusion. Many patients equate the "critical illness medical deduction" with "all medical expenses can be deducted," leading to filing errors that are rejected by the tax system, or even resulting in additional tax payments and penalties.
In terms of policy direction, the coverage of assisted reproduction technology in medical insurance is expanding. As of early 2025, regions including Beijing, Guangxi, Gansu, Inner Mongolia, Zhejiang, and Anhui have introduced varying degrees of medical insurance reimbursement policies, and it is expected that more provinces will follow. The expansion of medical insurance coverage will indirectly increase the proportion of patient expenses that can be included in the critical illness medical deduction, but fully resolving the tax deduction issue still requires specific tax policy adjustments.
For patients considering or currently undergoing IVF treatment, it is recommended to:
- Keep all original medical expense receipts and medical insurance settlement statements, as these are the basic materials for claiming the critical illness medical deduction.
- Confirm with the hospital's finance department before treatment which items are within the medical insurance catalog and request a detailed expense classification.
- During the annual tax settlement from March to June each year, honestly file the critical illness medical deduction, do not arbitrarily expand the scope.
- Monitor the official websites of the local medical insurance bureau and tax bureau to stay updated on the latest changes in medical insurance reimbursement and tax policies for assisted reproduction.
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