Are egg donation payments taxable? What tax implications should I understand?

Yes, egg donor compensation is generally taxable income. Key tax considerations: compensation over $600 typically requires a 1099-MISC form, payments are considered self-employment income subject to Social Security and Medicare taxes, you may need to make quarterly estimated tax payments, medical expense reimbursements (travel, medications) are generally not taxable, state tax implications vary by location, recommend setting aside 25-30% of compensation for taxes, consult a tax professional familiar with donor compensation, keep detailed records of all payments and expenses, some donors qualify for medical expense deductions. Tax laws change frequently - always verify current requirements.

Tax considerations (high level)

Tax treatment depends on your facts and jurisdiction. In general, keep clear records of what is compensation versus what is reimbursement for expenses, and bring those records to a tax professional.

If you receive tax forms (like a 1099), make sure you understand what it covers and whether estimated tax payments apply. Do not rely on a generic rule of thumb—confirm based on your specific agreement and situation.

Typical workflow (high level)

1. Application + screening: health history, labs, and psychological screening.
2. Matching: preferences and profile selection.
3. Legal + consent: agreement review before medications.
4. Medication + monitoring: clinic-guided injections and frequent appointments.
5. Retrieval + recovery: outpatient procedure with short recovery window.
6. Wrap-up: follow-ups, records, and next steps if donating again.

What can vary (and why)

• Clinic schedules and medical protocols (individualized to the situation).
• State and international legal requirements (especially for parentage workflows).
• Matching preferences and availability (fit matters).
• Insurance and financial structure (coverage details can change).
• Logistics like travel, time zones, and appointment availability.

Questions to ask (so you don’t get surprised later)

• What are the next 2–3 steps in my specific situation?
• What documents or records should I prepare before we start?
• Which decisions should I make now vs later?
• Which parts of compensation vs reimbursements might be taxable in my case?
• Will I receive any tax forms (1099, W-2, etc.) and from whom?
• Should I plan for estimated tax payments?
• What should I expect during screening, medications, and recovery?
• How are privacy and future contact handled?

Next steps

• Egg donor requirements
• Egg donor process
• Apply as an egg donor
• Contact our care team

Important note

This page is educational information only and is not medical, legal, or tax advice. Always confirm specifics with qualified professionals and your care team.

See the sources section below for reference links when available.