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bs-ford
New Member

Plasma donation as taxable income

My husband and I both "donate" plasma at a local center called BioLife    BioLife pays us by adding funds to a Visa debit card.  We never receive cash or a check.  They do NOT sent out 1099-M statements.  I know we were required to give BioLife our Social Security Numbers when we first started donating.

Are we required to claim this as income on our taxes?  If so, where exactly should this be entered in Turbo Tax.

Thanks!

1 Best answer

Accepted Solutions
Deeee
New Member

Plasma donation as taxable income

Hello bs.ford,

First, a special thank you to you and your husband for the lives you are saving!

Yes you are required to report this income. You enter that income (from your own records) "as if" you did receive a 1099-MISC. 

How to report in TurboTax
  1. Select Federal Taxes
        In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
  2. Select Wages & Income, and in the new screen, click I'll choose what I work on.
  3. Scroll down the Your Income Summary screen until you see the Less Common Income section.
  4. Click on the Start/Update button next to the Miscellaneous Income, 1099-A, 1099-C category.
  5. Click on the Start/Update button next to Other reportable income
  6. Follow the prompts.

 

Thank you for choosing TurboTax!

View solution in original post

56 Replies
Deeee
New Member

Plasma donation as taxable income

Hello bs.ford,

First, a special thank you to you and your husband for the lives you are saving!

Yes you are required to report this income. You enter that income (from your own records) "as if" you did receive a 1099-MISC. 

How to report in TurboTax
  1. Select Federal Taxes
        In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
  2. Select Wages & Income, and in the new screen, click I'll choose what I work on.
  3. Scroll down the Your Income Summary screen until you see the Less Common Income section.
  4. Click on the Start/Update button next to the Miscellaneous Income, 1099-A, 1099-C category.
  5. Click on the Start/Update button next to Other reportable income
  6. Follow the prompts.

 

Thank you for choosing TurboTax!

View solution in original post

raena-anderson
New Member

Plasma donation as taxable income

What do I fill out for Biolife's EIN?
brent_r1
New Member

Plasma donation as taxable income

This is not true and stated by the IRS that you do NOT have to report this as taxable income as it is considered a "non-cash gift."
SweetieJean
Level 15

Plasma donation as taxable income

@brent_r1  Do you have a citation for that?  A debit card is considered to be the same as cash.
TaxGuyBill
Level 9

Plasma donation as taxable income

@brent_r1 :  It is not a "gift", it is a taxable payment.
bradgdoll
New Member

Plasma donation as taxable income

It is a gift. You can't be paid for bodily substances, so legally, the money is compensation for the time it takes to donate. Just like would happen when someone donates a kidney.
GoLightly
New Member

Plasma donation as taxable income

You must report the plasma donation as income, even if no 1099-Misc is received.  You are giving up your plasma and BioLife is putting money on a debit card.  This transaction is no different than a farmer milking a cow and selling the milk.  
jrnelson34
New Member

Plasma donation as taxable income

I'd argue that it is taxable because EVERYTHING is taxable unless it's not.  The more interesting question is what is deductable if you're in the business of giving up plasma. I think there would be a strong argument to be made that the costs of generating the plasma should be deductible on a schedule C.  It could get really weird if you think about it.  Food, for example.  Mileage for sure.  What else though?  How far could you go?  Is anything you do to keep that sweet sweet human juice flowing deductible?  Maybe a mattress for a good night's sleep?   Medical expense?  A dairy farmer certainly deducts veterinary costs.   What else?  You could put yourself at a tax loss pretty quickly I'd bet. Thoughts?
SweetieJean
Level 15

Plasma donation as taxable income

You are posting on a 5 year old thread.
jrnelson34
New Member

Plasma donation as taxable income

So are you.  Have people stopped donating plasma since then?  
SweetieJean
Level 15

Plasma donation as taxable income

This is an income tax forum, and the tax law has changed a lot over the past 5 years.
 This is not a forum for political discussions, though.
jrnelson34
New Member

Plasma donation as taxable income

Wat?

I basically said "yes, plasma is probably taxable.  With that in mind, what expenses could be deducted?"

If that's political in your world, your world sucks.  

Bye.
mosekurt
New Member

Plasma donation as taxable income

I just talked to BioLife and they informed me that it is not considered income. Short and simple. End of question.

TaxGuyBill
Level 9

Plasma donation as taxable income

It is interesting how a medical firm is giving tax advice.

Are you going to ask the IRS for medical advice?
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