Q: Do you have to pay taxes when donating plasma? CSL plasma pays $60 a week. I donate plasma every week. I donated plasma 52 times, (or once per week,) at $60 a pop. That means I earned $3120 just from plasma this year. If taxes take a third of that, that means I owe nearly $1000 extra on my taxes. I'm screwed! Do I have to report plasma donation as taxable income?
Answer: No, you don't have to report plasma donation income on your taxes. Most plasma centers won't even ask for your social security number. Plasma donation centers have to pay taxes on money made selling your plasma, however, under Rev. Rul. 78-145, 1978-1 C.B. 169.
Your plasma donation is actually considered a "non-cash gift." Here's what the IRS website says about gifts:
"Generally, you can deduct contributions of money or property you make
to, or for the use of, a qualified organization. A contribution
is “for the use of” a qualified
organization when it is held in a legally enforceable trust for the
qualified organization or in a similar legal
arrangement. The contributions must be made to a qualified
organization and not set aside for use by a specific person."
CSL plasma falls into this organization category. So not only do you not have to pay taxes on the plasma you donate, you can deduct your time and gas expenses on your taxes as a gift!