Questions from my readers: I am thinking of becoming a sperm donor to make money during the Depression. Will the money be taxable?
I heard you can make some big bucks donating eggs. How do I hook up to that and am I taxed? Love ya Kim.
I ve been getting a lot of questions like that so here we go:
My answer is that you will be taxed and there is a chance from what I understand of the fertilization business, the legit ones of course, is that you will be paid with a 1099-Misc. That means that the income goes on Line 21 of your 1040 or you will need to fill out a Schedule C and be taxed on both sides of social security and half of self employment tax.
What kind of money are we talking about? For guys (men, dudes, mijos, etc) who are between 18 and mid thirties it varies from $1 to $200 a donation. I think most places also cap you at something like 10 kids that can be fertilized and after that you are not allowed to donate. You may need to do your own research on particular companies for this one, gang.
For gals, (women, dudettes, mijas, etc) between 18 and mid thirties it is averaging from legit organizations $4500 a cycle with most companies capping you at 6 cycles. You can do the math for the totals, gals.
Now, before you can scream, Hook a brother/sister/buddy/buddyette/pal up to that cash , you need to be able to jump through some hoops. And by jumping through hoops I mean flaming hoops that lions and horses wouldn t want to jump through.
Expect to be donating lots of free sperm if you are a man and you will be tested and probed and re-tested and probed again for weeks into months. You will also have to sign contracts not allowing yourself to drain your sperm or waste your eggs for days if not weeks into months at a time.
Did I mention that generally only 5% make it through the medical testing processing? They (the legit companies) have very tight requirements and you have to be really disease free and have genetics that would produce a Captain America Super Soldier in order to make it through healthwise. So, don t be sad if you wash out of the process early on. Did I mention that you (if you are a guy) have to donate sperm also for testing regularly for freezing, etc?
Then you also sign away your donations so that there will be no reasonable responsibility for taking care of any kids that get produced with your eggs or sperm.
On a related note, the Danish government allows sperm donations (and eggs) to be tax free because they don t want to spoil the anonimity of the donors. Lots of people want blonde kids with blue eyes so they export their gene pool bigtime. Other natons may also have taxes on sperm and egg donations but I haven t really spent the time researching them because I haven t had the questions, not looking for any kids grown abroad and because we are really stretching what is and isn t taxable with this particular question though it is a valid one indeed.
Don t worry, if you make it through the process the IRS isn t interested in if you are donating sperm or eggs, just if you are paying the taxes on the cash you are making from it.
Good luck if you want to go through the process and keep looking for other cash paying gigs in the meantime that may also help out. If you are out of ideas or want some tips, check out my book below.
Stay healthy and happy, gang. Thanks for the questions and keep em coming.
If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book, Practical Money Making, that is listed right after his paragraph in this very post. There are some great suggestions and ways to survive the Depression we are in.
Interested in any of my books? You may want to make a stop over here. Please click through to purchase my books and some other interesting items that actually ARE on sale.
Have you read my book, Bad Tax Idea, Good Tax Idea ? Please order it today. The tips inside can save you hundreds if not thousands of dollars! Tax planning should be done year round and not just two weeks into January or later.
Part of all the proceeds from the sales of that book go to Rett Syndrome research. One girl is born with Rett Syndrome worldwide every fifteen minutes. My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime. Boys born with the Rett gene generally die at birth.
Kim Isaac Greenblatt
Is Sperm Donor or Egg Donor Income Taxable
This entry was posted on Monday, May 18th, 2009 at 12:09 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.