Taxation of Egg Donors

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Yes, according to the Internal Revenue Code Section 213(a), the cost of donor eggs is deductible as medical expenses. The Code states, "Section 213(a) allows a deduction for uncompensated expenses for medical care of an individual, his spouse or a dependent to the extent the expenses exceed 7.5 percent of adjusted gross income."

Happy mother and daughter painting easter eggs in the living room

How much can an egg donor deduct from taxes?

According to the Pacific Fertility Center, "The fee paid to egg donors for completing a donor cycle is $10,000. If you have any questions regarding the fee paid to egg donors, please do not hesitate to contact us. There are many reasons for a woman to choose to become an egg donor. For many egg donors, the fee paid is not the main reason for egg donation. Rather, the satisfaction of participating in the miracle of life is the greatest compensation paid to egg donors."


Is the compensation received, taxable? 

Yes. Compensation for egg donation is considered taxable income by the Internal Revenue Service and the egg donor agency is obligated to report this income to the IRS. You will receive a Form 1099 at the beginning of the year after your egg donation so you can report your earnings and pay the appropriate taxes.

Depending on your tax bracket, that is how much you will get taxed on your income from this donation. For example, if you got paid $10,000 and were taxed at the self-employment rate of 30.3%, you only make $6,970.00.

If you have questions about taxable income related to being an egg donor, give us call.