How Much Does an Average Surrogate Make?

Embarking on a surrogacy journey involves a gestational surrogate carrying a pregnancy for intended parents. This act requires significant physical and emotional dedication, making the financial aspect of surrogate compensation a substantial and complex consideration. Understanding the various components of this compensation is important for all parties involved.

Average Base Compensation

The base compensation provided to a gestational surrogate serves as the primary payment for her time, physical commitment, and effort. This amount varies across the United States, reflecting different economic environments and regional demands. First-time surrogates can expect to receive a base compensation ranging from $50,000 to $90,000.

This base fee compensates the surrogate for the entirety of the pregnancy, including prenatal care, delivery, and the postpartum recovery period. Payments for this base fee often begin once a pregnancy is confirmed by a heartbeat and are typically disbursed in monthly installments.

Factors Influencing Compensation

Several factors directly influence the amount of base compensation a surrogate receives. Geographic location plays a significant role, with states having a higher cost of living or more supportive surrogacy laws, such as California, often offering higher compensation rates.

A surrogate’s prior experience also heavily impacts her compensation. Experienced surrogates typically command higher base fees than first-time surrogates. This increased compensation, which can be an additional $5,000 to $10,000 or more per journey, recognizes their proven track record and familiarity with the process. They bring a lower perceived risk and valuable knowledge to the arrangement.

The nature of the pregnancy itself can also affect the base compensation. Carrying multiples typically results in additional compensation due to increased physical demands and higher risks. A surrogate carrying twins might receive an additional $10,000 to $20,000. Complex medical procedures or invasive interventions during the journey can also lead to additional fees.

Additional Allowances and Reimbursements

Beyond the base compensation, surrogates receive various allowances and reimbursements to cover expenses and provide support. These distinct payments are separate from the base fee and are typically outlined in the surrogacy agreement. Medical expenses, including co-pays, deductibles, and any costs not covered by the surrogate’s insurance, are fully covered by the intended parents. If the surrogate’s existing health insurance is not suitable, intended parents may cover the premium for a new policy.

Allowances for maternity clothing are common, typically ranging from $750 to $1,000, and are usually provided after the first trimester. Travel expenses for medical appointments, screenings, and the embryo transfer are also reimbursed, covering travel costs for the surrogate and a companion. Lost wages due to medical appointments, bed rest, or delivery are often reimbursed.

Additional support may include:
A monthly allowance, often around $200-$350, to cover miscellaneous daily expenses like phone usage, parking, and non-prescription items.
Childcare expenses incurred during appointments or hospital stays.
Psychological support.
A life insurance policy paid for by the intended parents.
Post-delivery recovery fees like a postpartum allowance or housekeeping assistance.
Specific fees for medical milestones such as starting medication, embryo transfer, or for procedures like C-sections.

Payment Structure and Tax Considerations

Surrogate compensation is typically disbursed through a structured payment system, often managed by a neutral third-party escrow account. This account holds the funds provided by the intended parents and releases payments to the surrogate according to the agreed-upon schedule in the surrogacy contract. Using an escrow agent ensures financial security and transparency for both parties. Other allowances, such as maternity clothing or specific milestone payments, may be disbursed as lump sums when those conditions are met.

Regarding tax implications, surrogate compensation is generally considered taxable income by the Internal Revenue Service (IRS). Surrogates may receive a Form 1099-NEC (Nonemployee Compensation) or, in some cases, a Form 1099-MISC (Miscellaneous Information) from the agency or escrow service if payments exceed $600.

The receipt of a Form 1099-NEC indicates that the income is considered nonemployee compensation, which can be subject to self-employment taxes (Social Security and Medicare taxes) in addition to income tax. It is important for surrogates to maintain accurate records of all payments received and to consult with a qualified tax professional to understand their specific tax obligations and ensure proper reporting of income.