Common Finance and Tax FAQs About Surrogacy


We recently spoke to Gayle East-Garrett, founder and CEO of Surrogate Solutions about concerns common to gestational surrogates and intended parents. Topics that come up frequently, according to Gayle, are finance and tax issues and associated costs in general.

Gestational Surrogates

“Let me begin by saying that there is never a cost to the gestational surrogate,” said Gayle. “Sometimes we get calls from potential surrogates who ask how much it will cost them to be a surrogate or what expenses they will be responsible for.”

The intended parents will pay you a surrogate fee and will cover all your expenses from medical costs to maternity clothes.

Because you will rarely be out of pocket for any of the costs associated with your surrogate pregnancy and birth, you are also unlikely to have deductible expenses. Our previous blog on taxes and gestational surrogacy can provide more detail on this topic.

Intended Parents

There are considerable expenses associated with gestational surrogacy for intended parents.  Gayle says that IPs generally come into the process understanding there will be a surrogacy fee and medical expenses, but often underestimate the costs of factors like travel. If the gestational surrogate is located out of state, flight and hotel expenses can add up quickly. It’s important to factor these costs into your budget.

IPs may also not understand the importance of timing in keeping insurance costs down [link to previous blog] and that’s something we try to discuss with them right away. Getting into that open enrollment period can save them thousands and thousands of dollars.

The expenses IPs incur are not typically tax deductible. We talk about this in more detail here, but it’s really important to talk to a tax professional who will understand the full impact of surrogacy on your tax obligations.

Fortunately, there are options when it comes to affording the expenses associated with your surrogacy journey. We discuss some of those options here, but feel free to contact us with any questions you may have. We will do our best to answer them, or refer you to the services or professionals that can help

Gayle is a registered nurse with a Bachelor of Science in Nursing from Oral Roberts University in Tulsa, Oklahoma. She is the mother of two and has served as a surrogate herself. Her life’s passion is bringing surrogates and intended parents together to create new families.

If you have any questions about the financial aspects of surrogacy or any questions at all, please get in touch with Surrogate Solutions today.

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