Is Surrogate Money Taxed?

Knowing how being a surrogate may reflect on your taxes can help you feel prepared when you begin compiling all necessary tax documents.

Being a surrogate means providing a life-changing service of helping others achieve their dreams of parenthood. As with any valuable service you deserve to be compensated. 

When tax season rolls around, understanding whether surrogate pay is taxable is important in ensuring you've completed all necessary paperwork. We’re here to help you navigate the complexities of surrogate pay to help you earn the highest compensation for your family.

To learn how much surrogate salary you qualify for, contact us online now or text us at 913-204-0224 to speak with a specialist.

Is Surrogate Money Taxed?

The answer lies in whether you received a 1099-MISC form from the escrow service that distributed your surrogate payments. 

Surrogacy compensation is unique. It’s not your typical income, and there’s no clear-cut legal precedent. Unfortunately, there are no court cases to guide gestational carriers on the best path regarding taxes. So, here’s the straightforward rule: If you receive a 1099-MISC for your compensation, you must report it on your income taxes.

Why Do Surrogates Pay Taxes?

Surrogate pay is considered income for several reasons. First and foremost, it represents compensation for a valuable service provided by the gestational carrier.

As a surrogate, you undergo physical and emotional challenges during the pregnancy, and your commitment to helping intended parents build their families is commendable.

Just like any other form of work or service, the money you receive for being a surrogate is subject to taxation. Whether it’s the reimbursement for medical expenses, base compensation or additional allowances, these funds contribute to your overall income.

Therefore, it’s essential to treat surrogate pay as taxable income and report it accordingly when filing your taxes. Remember, consulting a tax professional is crucial to navigating the complexities and ensuring compliance with tax laws.

What if I Don't Receive a 1099?

While not every surrogate receives a 1099 form, this doesn’t necessarily mean your compensation is tax-free. The lack of a 1099 might seem like a green light, but it’s essential to tread carefully. Consult your surrogacy specialist or a local tax accountant to ensure you’re making informed decisions.

What Does Surrogate Salary Cover?

Our surrogate income package will increase your income and will cover your entire legal, medical and travel expenses throughout your surrogate journey. 

See Our Surrogate Compensation Breakdown

Surrogate
Compensation
Breakdown

Total Compensation:

$50,000 - $110,000+

What's Included:
Base Pay
Think of base pay like your surrogate salary. This payment is deposited monthly once a pregnancy is confirmed, and it is entirely yours to use however you choose!
Pre-Pregnancy Payments:
  • Monthly Allowance
  • Start of Medications Bonus
  • Mock Cycle Payment
  • Travel Expenses
Pregnancy Payments:
  • Start of Base Pay
  • Transfer Payment
  • Maternity Clothes
  • 3rd Trimester Self Care
  • Medical Procedures Bonus
  • C-Section Payment (if required)
  • Multiples Bonus
  • Bed Rest Coverage
Post-Pregnancy Payments:
  • Post-Pregnancy Self Care
  • Pumping Breast Milk (if agreed upon)
  • Counseling Costs (if needed)
  • Lost Wages
  • Spouse Lost Wages
Additional Benefits:
  • Personal Gifts
  • Referral Bonus
  • Life Insurance & Complications Insurance
  • Medical Insurance
  • Housekeeping Payments
  • Family Meal Payments

Get the Surrogate Salary You Deserve

Surrogate income is about recognizing the incredible dedication you’ve shown in helping another family’s dream of becoming parents come true. We’re committed to ensuring you receive the highest amount of compensation possible for your invaluable contribution to this life-changing journey.

Through our unwavering support and comprehensive services, becoming a surrogate with our agency has never been easier. Fill out our contact form or text us at 913-204-0224 to begin receiving surrogate income now.

Disclaimer: This information is not legal advice. Always consult with a tax professional for accurate guidance based on your specific situation.