For organ donations, Federal tax benefits must be claimed through an itemized deduction for medical expenses. The IRS does not permit a deduction for the value of the donated organ, treating the donation as a gift of time and service.
Taxpayers can include unreimbursed expenses related to organ donation as medical expenses on Schedule A (Form 1040), Itemized Deductions. Only the amount of total medical expenses that exceeds 7.5% of the taxpayer’s AGI is deductible. Then this amount, plus other itemized deductions, must exceed your standard deduction to be of benefit.
Direct medical costs, such as laboratory tests, x-rays, hospital stays, and follow-up care that are not covered by insurance, are includible. Travel and lodging expenses(subject to tax limits) necessary to obtain medical care related to the donation are also deductible. This includes costs for airfare, train tickets, and the operation of a personal vehicle.
Crucially, some significant financial burdens are explicitly not eligible for the federal medical expense deduction. Lost wages resulting from time off work for the donation, recovery, or testing cannot be included. Similarly, non-medical expenses like child care, elder care, or general living expenses while recovering at home are considered personal expenses and are non-deductible under federal law.
state alws may vary.
