Gestational Surrogacy Compensation and Taxes

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As a surrogate, your compensation is not considered a salary or fee for services. The purpose is to balance the scales for the discomfort and expense you experience during your surrogacy journey. It’s important to track all your expenses and the compensation you receive carefully, for tax purposes and so you know you’re being compensated accurately.

Total Compensation

You can expect to receive a base surrogate fee which will range from $25,000 to $40,000 depending on your experience and location. That amount can increase due to a variety of factors, including carrying multiples or experiencing complications. For example, surrogates requiring a C-section can receive approximately $3,000 in additional compensation.

You will also be compensated for expenses such as travel, maternity clothes or other items required to keep you and the baby healthy and comfortable throughout the pregnancy. For a more comprehensive list see our previous blog.

Expecting the Unexpected

As a surrogate, you’ve been pregnant before and know firsthand things don’t always go as planned. But don’t worry, if the unexpected happens (e.g., your doctor orders bedrest and you can’t work or need help around the house), lost wages and associated expenses will be taken care of by the intended parents.

Tax Facts

Let’s be honest here. Taxes are complicated, and they can vary widely depending on where you live. Your best bet is to work with an accountant who knows the ins and outs of surrogacy compensation and expenses. Your surrogacy attorney may be able to refer you to a trusted tax expert.

At the very least, know you must itemize to claim your considerable expenses. Take a look at IRS Publication 502 for more details on deductible expenses or see our previous blog on surrogacy and taxes.

If you have any questions about taxes and compensation for surrogates or any other questions about surrogacy, contact the experts at Surrogate Solutions. As a surrogate, you probably have a lot of questions regarding what to expect. Don’t hesitate to ask. We’re here to guide you every step along the way.

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