Can I claim sperm donor expenses as tax write offs on my 1099 income?

You'll need to treat your sperm donation income as self-employment income when you file. This means you can deduct ordinary and necessary business expenses that are directly related to this activity. Transportation costs to and from the clinic are definitely deductible - keep records of each trip including dates and amounts paid. These are considered necessary business travel expenses. The gym membership is trickier. The IRS generally considers gym memberships as personal expenses, even if being fit improves your "product quality." Unless the sperm bank specifically requires you to maintain a gym membership as a condition of donation, this would likely not qualify as an ordinary and necessary business expense. Subscription services used exclusively during the donation process might be partially deductible if they're ordinary and necessary for your "business." If they're for personal entertainment that happens to be used during donation, you'd need to determine what percentage is business vs. personal use.

I've been in a similar situation - reporting sperm donation income on the side. The tax stuff was confusing until I found https://taxr.ai which literally changed how I handled all this. I uploaded all my donation payment records and expense receipts, and it analyzed everything to show me what I could legitimately deduct. The transportation was 100% deductible (I used public transit too). For the gym membership, they explained I could only deduct it if the facility was used exclusively for "business purposes" - which obviously wasn't the case. For the subscription services, they helped me calculate the percentage used specifically for donation purposes versus personal entertainment. They even flagged some deductions I hadn't thought of - like certain vitamin supplements I was taking specifically because the clinic recommended them for donation quality.

After checking out taxr.ai from the recommendation above, I'm actually really glad I did. I was in the exact same boat - making about $5k from sperm donation while working my regular job. I was stunned when they showed me I could deduct things like the special diet I was following per clinic recommendations and even portion of my phone bill for all the scheduling/communication with the clinic. The transportation deductions alone saved me a couple hundred in taxes! What really helped was how they explained the "ordinary and necessary" test for each expense - made it super clear what would and wouldn't pass IRS scrutiny. Definitely removed all the guesswork for this weird tax situation.

After dealing with multiple IRS notices about my side gig income (I do medical studies, similar tax situation), I learned that trying to reach the IRS for clarification is practically impossible. I spent HOURS on hold trying to get answers about what expenses I could deduct. Finally used https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They actually got me a callback from the IRS in under 2 hours! The agent clarified that for medical participation income, transportation expenses are fully deductible but personal health maintenance generally isn't unless specifically required by contract. For your situation, they could get you connected with an actual IRS rep who could give you definitive answers about those gym and subscription deductions. Way better than guessing or getting advice from random internet strangers (no offense to everyone here).

I owe everyone here an apology. After being super skeptical about Claimyr in my comment above, I decided to try it anyway out of desperation (was getting nowhere with the IRS for weeks). I'm completely shocked - they actually got me a callback from the IRS in about 90 minutes. The agent was able to clarify exactly what I needed about my independent contractor deductions. For the OP's specific question about sperm donation - the agent I spoke with confirmed that transportation to/from the facility is 100% deductible with proper documentation, but gym memberships would be considered personal expenses unless there's a specific contractual requirement. Never been happier to admit I was wrong about something. Saved me countless hours of frustration.

Just wanted to mention that you should also track your mileage rather than just the Uber costs if you're driving yourself. IRS mileage rate for 2024 is 67 cents per mile which adds up fast! You can use a simple app to track business trips. For the subscriptions, my accountant told me you need to be really careful claiming those. If they're primarily for personal entertainment and only incidentally used during donation, the IRS would likely reject the deduction. If you can demonstrate they're primarily used for business purposes though, you can deduct the business percentage. Also don't forget to set aside money for self-employment tax which is about 15.3% on top of income tax! That catches a lot of people by surprise.

Everyone talking about the tax deductions, but don't forget you'll need to file Schedule C since this is self-employment income. Also, if you made over $400 in net profit, you're required to pay self-employment tax. My husband did this a few years back and we learned that donations to sperm banks are considered independent contractor work. Make sure you're setting aside around 30% of that income for taxes if you haven't been paying quarterly estimated taxes. The surprise tax bill really hurt us that first year.

Make sure you're using a good tax software that can handle self-employment income if you're filing yourself. I use FreeTaxUSA for this exact situation (W-2 job plus side income). Also, regarding deductions, the general rule is that an expense must be "ordinary and necessary" for your business to be deductible. Transportation passes this test easily. Gym membership probably doesn't unless explicitly required. Subscriptions are a gray area - you'd need to prove they're ordinary and necessary for sperm donation specifically. Don't push the boundaries too much here. The amount you'd save on questionable deductions isn't worth triggering an audit. Transportation costs alone will still reduce your taxable income nicely.

Just a heads up - if you're using rideshare for transportation, make sure you're saving those receipts in the app! Both Uber and Lyft let you download annual summaries that break down all your rides, which makes it super easy to filter out just the business trips to the clinic. For the gym membership, I'd be really careful there. The IRS has consistently ruled that general fitness expenses are personal even when they might benefit your work. Unless the sperm bank specifically requires a gym membership in writing, I'd skip trying to deduct it. One thing I haven't seen mentioned - you might be able to deduct costs for any required medical screenings or tests that aren't covered by the clinic. Also, if you had to take time off your regular job for appointments, that lost income isn't deductible, but any parking fees or other direct costs from those visits would be. The key is keeping detailed records of everything. Even if an expense seems questionable, having good documentation puts you in a much better position if you ever get audited.