I have been avoiding writing this post for over a year now; I am so full of love and joy when I think of the gift that I have been able to provide so many families with. I am writing about the anxiety and disappointment that I now feel about the after effects of this process.
I am happy and healthy and otherwise pleased with my decision to donate eggs. I am not happy with the way that the financial compensation works. After researching the process for months I was under the impression that the compensation was not taxable income. I was wrong, very wrong.
After completing each cycle I was given a check, out of each check I rewarded myself with a reasonable gift; purse, massage, skates, etc the rest of the money was used to pay various bills. I paid off a couple school loans and paid down a credit card still left over from college. I wasn’t using this money to go on vacations, purchase extravagant items or buy a fancy car, I was using it to make life a little easier. What I didn’t realize is, the IRS categorizes this money differently. It’s taxed at a very high rate- essentially they want 33% of what I brought in- when the compensation gets into the thousands this is devastating.
I have now been audited twice- I was quiet and did not blog about my issues in 2011 with my 2010 taxes; i cried- i stressed- i refiled- i paid BIG and I moved on. I have been audited a second time and the IRS wants what I feel is a very large sum of money for 2011. After deducting tolls, gas, wear and tear on my car, missed work (not to mention the toll on my body) I actually don’t make any money on these donations. Each requires upwards of 12-16 trips to the clinic (over an hour away), missed work, injections, tanks of gas, keeping my body healthy, etc.
I have been researching this online and spoke with a tax lawyer (through a work program last year)based on this I shouldn’t owe anything I should be able to write off everything from gas, tolls, vitamins, missed work, etc and not owe the IRS a damn thing. I just don’t know how to make any of this happen- the tax software I am wrestling with isn’t set up to deal with egg donations.
I am very anxious, very stressed and looking for some advice. I have reached out to a friend that prepares taxes. Instead of dealing with this on my own I hope he can help with the whole deductions and tax law stuff.
MellFire 
Did you consider telling the IRS that the donations were for pain and suffering? I know in many egg donor contracts that it stipulates that you are not \”selling\” genetic material and your payment is for pain and suffering…I take it the IRS didn't buy that argument? So sorry that you had to go through all of this!
LikeLike
definitely hire an accountant to help you refile your taxes and claim all of your deductions! Well worth the money spent on the accountant.if you were taxed as a self employed person then you should definitely be able to claim all of your personal expenses that you incurred to earn thatincome. the tax implications would be good information to share with women before they become Donors because there is no reason why you shouldn't be able to keep the income you earn while providing such a beautiful gift.
LikeLike
Thanks for posting this useful information. This was just what I was on looking for. I'll come back to this blog for sure!
LikeLike
I had to refresh the page 2 times to view this page for some reason, however, the information here was worth the wait.
LikeLike
So sad to hear what happened with you this couple of years. The problem I can see is that you don’t know much about it, and ended up paying a larger sum of money. It was a good thing that you consulted with a lawyer. Next time, make an action at the first sign of problem that you’ve encounter to prevent hassles on your tax reports.
LikeLike
I donated eggs last year and wanted to know what was the result of your tax returns? Is there any way I can prevent this? Thanks!
LikeLike
I had to hire an accountant, this fella has had to go over every tax return for the past three years with a fine tooth comb. I owe the IRS thousands of dollars. I can not say that I would not have donated if I knew about these taxes beforehand, but I would have been better prepared. I was taxed at nearly 44%, which honestly is too high. Any tax is too high. The shots, the invasive procedures, the hours in the car driving to and from the appointments, the hours of missed work, the wear and tear on my care, etc…. were worth far more than what I was paid. I donated eggs eight times to help people make families, families that ultimately will go on to pay more taxes. I have been audited every year for the past few years because of this, it is invasive and horrible. My accountant has been refiling all my taxes for me, filing as a business owner- items such as mileage and tolls for roads were deductible. You can prevent being audited by paying taxes, you can avoid paying thousands of dollars to the IRS by hiring an accountant to prepare and file your taxes.
LikeLike