topic Plasma donations in Tax law changes

Plasma donations

Bob the builder — Wed, 28 Jun 2023 18:13:36 GMT

Hello, I had a tax question regarding plasma donation. My question is they are not required to give out a W2 or a 1099mc, how am I suppose to track how much money I have made in order to report to them?

Re: Plasma donations

Jackstar221 — Wed, 28 Jun 2023 18:24:46 GMT

Hi,

So the threshold for requirement of a 1099 is $600 or more in annual income. So if the income is $600 or more throughout the year, you are required to report it as taxable income.

If the plasma donation center does not provide a 1099, I suggest keeping track of your donations in an excel file or log. It is possible your plasma donation center may have records of your donations throughout the year, so I suggest contacting the donations center.

In addition, you may have bank deposits or checks you deposited that may provide you a record of those.

Thank you,

John

CPA

Re: Plasma donations

Bob the builder — Wed, 28 Jun 2023 18:27:43 GMT

What happens if I miss calculate the # or add something wrong? It seems odd to me if I am required to pay taxes on it that they wouldn’t be forced to track it it?

Re: Plasma donations

Jackstar221 — Wed, 28 Jun 2023 18:30:21 GMT

If it is less than $600 annually, it is not required to be reported.

It is possible the IRS may send you a notice if you neglect to report income that is greater than $600 annually. You can sign up for Max Benefits at check-out when you pay your TurboTax fee, in which our third party, audit defense can help you address the notice.

Re: Plasma donations

Bob the builder — Wed, 28 Jun 2023 18:30:59 GMT

What happens if I don’t have any of those record and am unable to track the amount I made? What do I do then?

Re: Plasma donations

Jackstar221 — Wed, 28 Jun 2023 18:37:18 GMT

Make your best estimate. It is better to overreport the income, rather than underreport it. The IRS may send you a notice if you underreport it. If you overreport it, the IRS may send you a letter with an additional refund.