To tax or not to tax?

February 3rd, 2015

To tax or not to tax? 1099s have been a hot button issue amongst egg donors and surrogates for years. And legally, it’s been a very gray area. Now, the IRS has officially ruled in the case of Perez vs. Commissioner that “compensation for pain and suffering resulting from the consensual performance of a service contract is not ‘damages’ and must be included in gross income.”

The first case that addressed including taxable income of compensation for donation of human eggs, Perez vs. Commissioner opened the door for a national discussion on the transparency of participating as an egg donor or surrogate. In this specific case, a woman was issued a 1099 in the amount of $20,000 from her agency following 2 egg donations the previous year, but did not include this amount on her federal income tax return due to pain and suffering as a result of the process.

The fact is, donor and surrogate compensation has never been for “damages” or the “purchase” of a body part or a baby (as it relates to surrogacy) – it is for performing a service within the scope of a binding contract. It is also not a “gift,” as some donors and surrogates claim, but who then risk not receiving ANY compensation due to the fact that contracting a “gift” can be legally contested – and the Intended Parents could walk away from the agreement. This ruling recognizes payment for what is it and should always be: for the time, effort and inconvenience of the process. And under IRS guidelines, any income over $600 is to be claimed.

In Perez’s case, her pain and suffering – while completely valid and truly unfortunate – were ruled to be “within the scope of the medical procedures to which she contractually consented. Twice.” The ruling went on to say, “…what matters is that she voluntarily signed a contract to be paid to endure them. This means that the money she received was not ‘damages.’”

While understandable that some would argue it’s insensitive not to consider the physical nature of egg donation and, of course, surrogacy, we’ve reached a point where there simply must be standardized regulations in all areas of the process. This ruling finally resolves the ambiguity surrounding egg donation and we expect in short order the same kind of ruling for surrogacy.

For 18 years, ConceiveAbilities has worked with hundreds of generous, educated and very proactive women. Each one of them has received counseling of the fact she must claim her compensation as income in order to protect the integrity of the process as well as her family’s financial status, one free from penalties and/or liens imposed for not paying tax on the income. It’s important to discuss concerns about the law with an attorney or concerns about income with a tax expert. We believe women who are thoroughly educated on the process are certainly wise enough to make the final decision for herself and her family.

Friday Round Up

January 30th, 2015

ConceiveAbilities is keeping you up-to-date on the latest news in the busy, burgeoning world of infertility. Below, a round up of this week’s need to know stories:

From TIME: Battle Over Paid Surrogacy Opens New Front

From RESOLVE: Resolve Advocacy Day – May 14

From Huffington Post: Fewer Women Are Seeking Medical Help for Infertility, Study Finds

From Accounting Today: Egg Donor Income Was Taxable Compensation, Not Damages

From New Jersey Law Journal: NJ Lawmakers Once Again Move on Surrogacy Contract Bill

And in ConceiveAbilities news? We’re celebrating one positive pregnancy test, two embryo transfers, and EIGHT new surrogates to Team Baby! 

Thank you, Cathy!

January 20th, 2015

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It’s a bittersweet celebration as we honor our irreplaceable case manager extraordinaire, Cathy Corbett, on her last day with ConceiveAbilities. For 11 years, she has been a truly integral part of our thriving egg donor and surrogacy programs. We’re so grateful to you for all of your wisdom, humor, insight, and phenomenal care, and wish you the very best as you move on to share your incredible gifts with others. You have blessed more lives than you can imagine. Thank you, Cathy!

A Day in the Life of a Surrogate – Birthday Edition

January 2nd, 2015

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This beautiful little one made it just in time to ring in 2015 with her thrilled new parents! All the love and thanks in the world to her surrogate Dana for changing so many lives and making the new year one filled with such excitement.

 

Cheers to 2015!

December 31st, 2014

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A reminder and wish for a safe, happy and healthy new year from all of us at Team Baby! 

Happy Holidays from ConceiveAbilities

December 24th, 2014

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As we celebrate the highlights of 2014, we recognize our strong relationships as the cornerstone of our success. Thank you for helping ConceiveAbilities continue to grow! Warmest wishes for a very Merry Christmas from all of us at Team Baby! 

Celebrating the season

December 19th, 2014

Silly sweaters and cookie swaps – oh what fun! Team Baby Denver got festive at our annual surrogate holiday party, while surrogates in the Chicago, Dallas and Houston areas celebrated with special support group dinners. Cheers to these women and the gifts they give!

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Team Baby: Santa’s Little Helpers

December 16th, 2014

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Santa’s little helpers: Team Baby held a company food drive as part of our holiday giving in connection with the Greater Chicago Food Depository’s 1 City, 1 Drive Program. It was an honor to play a part in helping Chicago’s families have a more full and festive season. You can help too! Visit www.chicagosfoodbank.org for more information. #

A Day in the Life of a Surrogate – Birthday Edition

December 1st, 2014

It was a busy weekend for birthdays! Two-time surrogate Rachael delivered a healthy baby boy just one day before her own birthday: “There is no greater gift than getting to see him and his parents.” What a blessing. Congratulations to all!

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A Day in the Life of a Surrogate

November 13th, 2014

We’re sending sticky thoughts to surrogate Sarah and some beautiful embryos, who were escorted to IVF transfer by case manager Cathy. Go Team Baby!

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