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Assisted Reproduction

Why $10,000+ Egg Donor Fees Will Likely Become The New Normal

There has been a lot of buzz this week about the IRS pursuing an egg donor for not reporting as income $20,000 in compensation she received from two egg donation cycles. I suspect Judge Holmes will rule later this year that at least a significant portion of the egg donor’s compensation is taxable income.

The unintended consequence of this anticipated ruling will likely lead to an increase in the “fees” being charged by egg donors so as to offset their tax liability. Most donors have a figure in mind that they want to net for their cycle. So you can expect the average donor compensation to increase by anywhere from 15-35% — creating further financial headaches for already cash-strapped infertility patients.


One comment for “Why $10,000+ Egg Donor Fees Will Likely Become The New Normal”

  • marilynn

    This is not exactly news to anyone, least of all the woman who signed the donor consent forms which always clearly state that she is an independent contractor paid to provide a service (not sell merchandise) and that she’ll need to file a 1099 to have taxes taken out of it. She had to sign acknowledging that its standard fair for both egg and sperm donors. Just like it’s standard for the agreements to delve into great detail about the abandonment of parental rights if and when their offspring are born. She can’t act like she’s surprised. None of this is in small print.

    Also true charitable donations involve giving money or goods to real charitable, not for profit organizations that have that special not for profit tax status. Cryo banks and physicians and private individuals don’t qualify as charities. Cryo banks are in business to make a profit. They are not shelling out cash to donors and then riding that expense off as a charitable donation, they can’t. They are not buying products or property from donors they are buying their agreement to perform multiple different services for them, before and and for at least 18 years after their offspring are born and in some contracts the donor obligates him or herself to the performance of services for the rest of his or her natural life. The bulk of the services to be performed by egg and sperm donors are not able to be performed unless and until their offspring are born, yet they receive payment for their services in advance much the same as someone would pay now for an extended warranty service that may or may not ever need to be performed. Another analogy would be buying a ticket to a concert, you pay in advance and get something that will let you into the concert later. Your not really caring about the paper ticket your caring about what the ticket is going to get you. If the show is canceled you’d be bummed.

    So unless she truly donated her eggs to a bona fide, not for profit organization doing research on genetic mutations in eggs or something unrelated to reproduction or any further services to be provided in the future consenting to the limited use of her eggs for research without any risk of fertilization and she has like bus transfers and can prove that her pay was docked the day she was absent and she got no vacation pay, I’d say she’s being a big baby about the fact that she blew the whole wad right away and now can’t pay the taxes on it. It’s about half of what she would get I’d imagine. Don’t forget the State taxes too. I’ve been down this road thinking I was getting wads of cash free and clear then come time to fill out those 1099’s and I owed half of what I made and I’d already spent it. Sucks. They’ll just have to garnish her wages at her real job. If she was paid $5000 she would only get to keep $2500 of that. You can up the fee to whatever you want they’ll still take half. Clinics could put them on payroll and take taxes out for them and then they might get some workers comp if something goes terribly wrong. That actually might be the responsible thing of these clinics to do – put them on payroll and give them medical insurance maybe life insurance too. Call them temporary employees where they take out taxes but not give them insurance. Tough call. How can you really employ someone to agree to fertility treatments and agree to give up their offspring at birth, they’d be on the payroll forever. They pretty much have to handle it as contracting for services. Gosh it just does not get any sleezier than paying someone to abandon their parental obligations to their kids when they are born right? Well if they won’t agree to do that first and foremost then there won’t be a need to harvest their eggs right? First thing is first promise not to come forward and claim your child at birth and promise never to contact them or to disclose the truth to anyone for as long as you live an promise to keep us updated whenever you move and promise to let us know if you develop any tumors or anything and promise to make yourself available for contact but only if we want you to be available otherwise hide and pretend you don’t have any children being raised by other people.

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