Are Surrogacy & Egg Donation Expenses Tax Deductible? The 2025 IRS Ruling Weighs In

For years, intended parents have wondered if infertility treatments like IVF are deductible under Internal Revenue Code Section 213, what about the costs of surrogacy or egg donation? A 2021 IRS Private Letter Ruling seemed to deny deductibility, stating that only medical expenses directly affecting the taxpayer’s body—such as sperm retrieval—qualified, but a conflicting result with a 2003 ruling dealing with egg donation.

Now, a 2025 IRS ruling has addressed the question again, this time for a heterosexual couple using an egg donor and a surrogate. The IRS reaffirmed its position: medical expenses must directly impact the intended parent’s body to qualify. Once again, surrogacy-related costs—including childbirth, medical insurance, and legal fees—were deemed non-deductible.

While these Private Letter Rulings aren’t binding on all taxpayers, they signal the IRS’s current stance on third-party reproduction expenses.

What does this mean for intended parents? The likelihood of writing off your third party reproductive expenses are not good.

Read the full blog to explore the key takeaways and how this impacts your journey.

Contact Tsong Law Group for expert guidance in ART law.