do you know any one personally that has paid taxes on surrogacy?

by Rachel
(Sacramento, CA, USA)

I am first time surrogate and wanted to know when you do report your surrogacy compensation on your taxes are they taxed if you say compensation was for pain and suffering? Do you know, or have you been taxed? I've tried to find person's first hand experiences online but have failed. Not sure what to do!

Reply by Rayven

Rachel,

I am not a tax accountant or attorney so am unable to advise you on whether or not you need to declare your compensation on your tax reports. If you call the IRS, they will tell you that it is income and you need to pay taxes on it.

Do I know anyone personally who has paid income taxes on their compensation? Yes, I do. Do I also know those who do not? Yes, I do.

Keep in mind if you declare your surrogacy income and are eligible for Earned Income Tax Credit, your surrogacy compensation will most likely eliminate this.

Best wishes!