Do I need to claim compensation for surrogacy if the agency does not give me a 1099 form and it is for pain and suffering?

[zroe92]

The surrogacy agency I work with does not give out 1099 forms. The contract will have the compensation be for pain and suffering or pre-birth child support. Do I have to pay taxes on the compensation and how would I do that if needed.

[DawnC0 · Accepted solution]

Yes, it goes on Line 8 of Schedule 1 as 'Other Income' (one-time event compensation).  You are required by law to report and pay taxes on all your taxable income, whether or not the IRS gets notice of the income from the agency.  This applies to a surrogacy payment without a 1099 just as it applies to payment "under the table" for working off the books, or reporting and paying taxes on tips.  This is also true even if the payment is reported to you as 'pain and suffering'.  

To enter it in TurboTax, sign into your TurboTax account and click on 'Take Me to My Return'.  Click on:

• Federal (left menu)
• Wages and Income (top menu)
• Less Common Income section (Choose 'see all income types')
• Miscellaneous Income - bottom of the list
• Other reportable income
• Enter a description - Surrogacy one-time payment
• Enter the amount you were paid 
• Select Done

[Edited 04/12/20 to update line numbers]

[TaxGuyBill]

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