Taxation of Egg Donors

Egg donors typically receive between $5,000 and $10,000 for a donation. While you may think that it is a good deal, keep in mind that the IRS treats that pay as self-employment income.

In the 2015 Tax Court case of Perez v. Commissioner of Internal Revenue,  the court ruled that the money paid to Perez was indeed taxable income. If you’re thinking about becoming an egg donor, you need to look at the tax consequences before you commit to the process.

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 will really only make $6,970.00.