7. Payment for donated eggs
Wait… what!? Egg donation is taxable? Yes, women who donate their eggs to help unfortunate couples owe taxes for doing so. The Internal Revenue Service sees compensation for egg donation as taxable income. All egg donors must receive a 1099 form from fertility clinics in order to report their earnings and pay their taxes.
According to Egg Donation, Inc., a company that matches donors with couples, payments for this particular service range in general from $6,500 to $30,000. There are many women who don’t agree with IRS when it comes to reporting the payments for egg donations.
In fact, Nichelle Perez, a woman from California who didn’t report her compensation, did not agree with the government on this matter, so she took the problem to the court. She even wrote that she feels like she’s being penalized for doing something good for another person.
However, she, unfortunately, lost the case against IRS. So, if you are considering taking on this behemoth, it’s probably best to just pay what you are owed as they rarely lose in court.
