Is Surrogacy Expenses HSA-Eligible? (2026)
Payments for an unrelated gestational surrogate's care are not HSA-eligible expenses for the account holder.
Typical Cost
Unrelated-surrogate costs are not eligible
Details
Publication 502 excludes amounts paid to identify, retain, or compensate a gestational surrogate and amounts paid for that unrelated surrogate's medical care because the expenses are for someone who is not the taxpayer, spouse, or dependent.
What to do next
Do not use HSA funds for an unrelated surrogate's compensation or medical care. Separate medical expenses for you, your spouse, or your tax dependent may follow their own rules.
Decision record and source basis
This ruling has a source packet that directly addresses the item or rule below. A product or retailer label does not override the expense purpose, eligibility conditions, or documentation requirement shown above.
Search coverage (4 product and plain-English terms)
gestational carrier costs, gestational surrogate, surrogate medical bills, surrogate pregnancy costs.
- IRS Publication 502: Surrogacy Expenses
Publication 502 excludes identification, retention, compensation, and medical-care costs for an unrelated gestational surrogate.
Source reviewed
- IRS Publication 969: HSA qualified medical expenses
HSA distributions are tax-free only for uncompensated qualified medical expenses incurred after the HSA was established, with supporting records retained.
Source reviewed
Frequently Asked Questions
Are gestational-surrogate medical bills HSA-eligible?
Not when the surrogate is not you, your spouse, or your tax dependent. Your own qualifying fertility care is a separate decision.
Related HSA Expenses
Fertility Treatment
$300–$5,000 (IUI); $15,000–$25,000 (IVF per cycle)
In Vitro Fertilization (IVF)
$15,000–$25,000 per fresh cycle; $3,000–$7,000 per frozen transfer
Pregnancy Care
$2,000–$11,000+ (total out-of-pocket for delivery)
Legal Abortion Care
Varies by provider, procedure, location, and insurance coverage
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