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5 Things You Should Know about The Family Act of 2011
Are you aware of The Family Act of 2011? The Family Act, modeled on an existing tax credit available to taxpayers who incur adoption expenses, is designed to help reduce some of the cost barriers to fertility treatment by implementing a tax credit for those diagnosed with infertility. The legislation has now been introduced to both the U.S. Senate and the House of Representatives.
Here's five things you need to know about The Family Act of 2011:
- The legislation provides a maximum lifetime tax credit of $13,360 to families who want children, but must use IVF. There is a 50/50 cost share inherent in the credit, so eligible taxpayers may claim the credit for up to one-half of their expenses.
- To claim the credit, taxpayers must have been diagnosed as infertile by a licensed physician with an indicated course of treatment as in vitro fertilization (IVF).
- The tax credit does not include expenses already covered by an individual's insurance plan or already claimed within a schedule of itemized deductions for health care expenses in a tax year. Eligible treatments include medical procedures, laboratory charges, professional charges and other necessary costs when a patient undergoes IVF treatment.
- The credit would be available to taxpayers who have an adjusted gross income of less than $182,500 and phases out for those whose incomes reach $222,520.
- The tax credit is available in part or in whole on an annual basis until the taxpayer reaches the aggregated limit of $13,360.