Do Surrogates Get Taxed? [2023 Tax Year]

You earn exceptional compensation as a surrogate. Learn more about how to document your surrogate pay on the your taxes.

Becoming a surrogate is the adventure of a lifetime. You get to fulfil the dreams of the intended parents while earning compensation that you can use to create a better future for you and your family.

As a surrogate, you can earn $50,000-$110,000+ for the heroic service you’re providing. Because this is such substantial compensation, it’s important to know how to document it when tax season rolls around.

If you have questions about your surrogate pay, fill out our online form or text 913-0204-0224 for immediate assistance.

Do Surrogates Get Taxed?

There are no clear-cut surrogacy laws regarding taxes, so there are not any established cases or state laws specifically addressing being a surrogate and paying taxes.

That being said, you will likely need to report your surrogate compensation on your taxes. If you receive a 1099 MISC from, you are required to claim your compensation as income on your taxes.

That’s why we recommend reaching out to your surrogacy specialist or a local tax lawyer to get the most up-to-date information.

What is a 1099-MISC Form?

1099 MISC form is an official document used to report miscellaneous income, such as payments to independent contractors, rent, royalties and prizes or in this case, surrogate compensation.

It is typically issued by a payer (such as an employer, client, or financial institution) to a recipient who received payments during the tax year.

The primary purpose of the 1099 form is to report income that is not subject to withholding tax. Unlike regular employees who receive a W-2 form, individuals who receive 1099 forms are responsible for calculating and paying their own taxes.

What if I Don’t Receive a 1099-MISC Form?

Surrogates are still legally obligated to report their earnings. Each surrogacy journey is unique, so it’s essential to consult with your surrogacy professional for personalized advice.

Ideally, discussions about surrogate compensation and taxes should start during the drafting of the surrogacy contract. Experienced surrogacy attorneys can guide you through this legal step.

Why Do Surrogates Pay Taxes?

Your surrogate compensation is treated as your income for the amazing service you’re providing. Because of this, tax entities place surrogates under the category of “self-employed individuals” when it comes to paying taxes on surrogate pay.

This means you are responsible for both the employer and employee portions of Social Security and Medicare taxes. Unlike traditional employees, surrogates shoulder these costs themselves.

If you have questions about surrogate pay and taxes, contact us today to get the answers you need.

The information in this article should not be taken as financial or legal advice. Please contact a local tax lawyer for information on tax laws where you reside.

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