How Much Money Do Surrogates Make?

Surrogacy involves an individual carrying a pregnancy for another person or couple. Understanding the financial aspects is practical for those undertaking this journey. Compensation acknowledges the significant commitment and demands throughout the process. This financial acknowledgment helps offset potential disruptions to a surrogate’s life and ensures their well-being during the pregnancy.

Average Compensation Ranges

Surrogate base compensation varies across the United States. First-time surrogates can expect base compensation from $35,000 to $60,000. This is typically paid in installments throughout pregnancy, from confirmation until delivery.

Experienced surrogates, having completed a journey previously, often receive higher base compensation. Their experience is valued, with base fees ranging from $50,000 to $75,000 or more. These figures represent direct payment for carrying the pregnancy, exclusive of additional expenses or reimbursements.

The specific amount is often determined by agreement between the surrogate and intended parents, often facilitated by a surrogacy agency. This base compensation recognizes the significant commitment and effort. It is distinct from other payments covering out-of-pocket costs, which are handled separately.

Factors Influencing Compensation

Several elements contribute to the variability in a surrogate’s base compensation. Geographical location plays a significant role, with higher rates in regions of greater demand or elevated cost of living. For example, states with established programs or higher expenses may offer higher base fees.

Experience level also directly impacts compensation. A surrogate who has successfully carried a pregnancy previously commands a higher base fee due to their proven ability to navigate the process and understand the demands. This experience provides intended parents with greater confidence, reflected in increased compensation.

The specific agency facilitating the arrangement can influence compensation. Different agencies may have varying fee schedules and benefit packages, leading to differences in base compensation. While gestational surrogacy is common, specifics like carrying multiples can also influence the base fee due to increased physical demands and medical complexities.

Additional Financial Support and Reimbursements

Beyond base compensation, surrogates receive comprehensive financial support and reimbursements covering all journey-related expenses. These payments ensure surrogates do not incur out-of-pocket costs for medical care or other necessary expenditures. Medical expenses are almost entirely covered, from initial screenings and fertility treatments (like IVF) to prenatal care, delivery, and postpartum recovery.

Travel expenses are also reimbursed, covering costs for appointments, medical procedures (like embryo transfers), and consultations. This includes airfare, accommodation, ground transportation, and a per diem for meals. Maternity clothing allowances are also provided, recognizing the need for a comfortable wardrobe as pregnancy progresses. These allowances are typically provided at specific points, such as after the first trimester.

Lost wages, if applicable, are reimbursed for time off work due to medical appointments, bed rest, or delivery and recovery. This ensures the surrogate’s financial stability is not negatively impacted by their commitment. Childcare costs for appointments or travel are also covered, alleviating the burden on surrogates who are parents. Psychological support fees, legal fees for contract review, and a life insurance policy for the surrogate are also provided, ensuring comprehensive care and protection.

Taxation of Surrogate Compensation

Surrogate compensation has specific tax implications. Generally, base compensation is considered taxable income by the IRS. This means the amount for carrying the pregnancy is subject to income tax, similar to wages. Surrogates may receive a Form 1099-MISC or Form 1099-NEC from intended parents or the agency, reporting taxable income.

Surrogates should track all income and maintain detailed records of any deductible expenses. While base compensation is taxable, reimbursements for actual expenses incurred during the journey are generally not taxable income. This distinction is crucial: payments for medical bills, travel, maternity clothing, and lost wages tied to documented expenses are viewed as reimbursements, not additional income.

Understanding these tax obligations is a significant part of surrogacy’s financial aspect. While specific tax advice should come from a qualified tax professional, surrogates should be aware that base compensation will likely need to be reported on their annual tax return. Keeping meticulous records of all financial transactions related to the arrangement is prudent for accurate tax reporting.