Tax reduction for infertility treatment
As a rule, anyone who receives an income in Germany must pay taxes on it. The income tax calculated by the tax office can then possibly be reduced due to extraordinary burdens.
What are “extraordinary burdens” and: Does my wish to have a child count as extraordinary burdens?
Extraordinary burdens are, according to §§ 33 ff. EStG: “extraordinary burdens are financial hardships that a normal taxpayer with comparable income, assets and marital status would not necessarily have to face.” These are burdens that cannot be avoided for legal or factual reasons, because they cannot necessarily be “avoided”. More precisely, these are circumstances that some people suffer, but others don’t.
Extraordinary burdens also include special medical expenses if they are not incurred by the average taxpayer. The examples can be very different and can also be applied to fertility treatment.
In the application form, these treatments can be listed as tax-reducing. However, the tax office does not recognize the entire 100% of the claimed costs, because the taxpayer is expected to bear part of the costs himself — in some cases 1 to 7% of the total costs. For you, this means that even if your case is recognized, a small part will not be taken over.
According to the jurisdiction of the Federal Fiscal Court, the costs of fertility treatment are generally tax deductible. However, the basic prerequisite is that the costs relate to a “medically necessary treatment” that is permitted in Germany. Egg donation or surrogacy for example, are not among the permitted treatments. Otherwise, the court is not concerned with evaluating social points of view and life models, but with financial burdens actually incurred due to medical costs (in the sense of tax law).
It therefore does not matter whether you live in a same-sex partnership or are single, but rather the extraordinary burden you experience (due to an unfulfilled child wish).
Comparison of tax law vs. health insurance law
The rigid requirements in the statutory health insurance law § 27a SGBV are not observed in the case of tax law and are relaxed by the Federal Fiscal Court. In contrast to the regulation of health insurance funds, unmarried couples can now also deduct their costs for assisted reproduction from taxes as an extraordinary burden. In addition, taxes can also be deducted for treatments with a sperm donation. However, this only applies to homologous insemination (when the partner’s sperm is used). Since 2017, a woman can also have treatment costs for IVF or ICSI deducted from her taxes as fertility treatment if she lives in a same-sex partnership.
The reason for this is ultimately that it is not the chosen lifestyle that should be decisive, but the question of the restriction that someone experiences.
Financial support for assisted reproduction by federal states
Since the 2004 health reform, couples with statutory health insurance have to pay 50% of the costs of infertility treatment themselves. Because of this, there is now the possibility of receiving financial support from the coffers of the family ministries of the federal government and several states. The federal government has issued a federal guideline for this purpose.
Aim of the financial support for assisted reproduction
In principle, the aim is to reduce the couples’ own contribution from 50% to up to 25% by means of funding from the federal state and the federal government. However, the granting of financial support by the federal government depends on whether the federal state in which the couple has their main residence has also enacted a legal basis for financial support for the couples.
Federal states that provide financial support for assisted reproduction:
- Mecklenburg-Western Pomerania
- Lower Saxony
- North Rhine-Westphalia
Prerequisites for financial support by the federal states
Since the federal states are legally independent, they have in part created different requirements for financial support and the amount of benefits. These cannot all be listed here, which is why reference is made to this Funding Check page.
Affected couples can only receive financial support if they choose a fertility clinic in the federal state that provides financial support and the treatment is IVF or ICSI. Only the first four treatments are relevant. The couple must be married to each other or live in a non-marital partnership. Since only the couple’s own eggs and sperm must be used, treatments with a sperm donation are not taken into account. Accordingly, no same-sex couple will receive financial support. The age of the couple is decisive. Both must be older than 25, with the woman not older than 40 and the man not older than 50.
If you are also interested in the topic of cost coverage for assisted reproduction by the health insurance fund, you can follow the link.
Social freezing: success rates
What is the ideal age to freeze my eggs? This is an often asked question in the context of social freezing. A simplified answer would be that it is generally better to freeze at a younger age than at a later age. However, it is not quite that simple.
At Fertilly, we have made it our mission to accompany couples (homosexual and heterosexual) and singles on the way to fulfilling their child wish. In doing so, it is important to us to create transparency in the area of fertility services, to provide information and knowledge on the topics of pregnancy and fertility and to help you to find the most suitable Fertility Center. Through cooperation with first-class Fertility Centres and clinics in Europe, enquiries about Fertilly are given preferential treatment. This means that our patients avoid the usually long waiting times and get appointments more quickly.
If you would like more information about Fertility Centers, success rates and prices, please contact us using this questionnaire. We will advise you free of charge and without any obligation.
Answer the first questions in the online form in order to book an appointment. This way we can better address your needs during the conversation.
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