Are surrogate payments taxable?

Surrogate compensation and reimbursements can have tax implications, but the answer is highly fact-specific. Treat this as general education only and confirm details with a qualified tax professional.

Overview

This guide answers “Are surrogate payments taxable?” from a surrogate perspective and outlines what typically happens, what can vary, and what to confirm with your clinic and agency.

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. Confirm eligibility: requirements, records, and a quick pre-screen.
2. Screening: medical records review, background checks, and psychological screening.
3. Matching: profile review, introduction, and alignment on expectations.
4. Legal: agreements are reviewed and signed before medical steps proceed.
5. Medical cycle + transfer: the clinic manages timing, medications, and monitoring.
6. Pregnancy + delivery: ongoing care coordination through birth and postpartum wrap-up.

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 support is available during pregnancy (coordination, counseling, emergency support)?
• What expenses are covered and how do reimbursements work?

Next steps

• Surrogacy requirements
• Apply as a surrogate
• Surrogacy process
• 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.