Earned $4,800 selling plasma donations last year - Do I need to report this income on my taxes?

Yes, you do need to report this income on your tax return. The IRS considers payment for plasma donations as taxable income, not as a tax-free "donation" like when you give blood without compensation. This would typically be reported as "Other Income" on Schedule 1, Line 8z of your Form 1040. You don't need a 1099 form from the plasma center to report this - you're still required to report all income even without official documentation. Keep track of your donation amounts - the prepaid card statements should help with that. If you've been doing this regularly, you might want to consider if this could be classified as self-employment income, especially if it's something you do consistently for profit. In that case, you'd report it on Schedule C and might be subject to self-employment tax.

I was in a similar situation a few years back and was super confused about reporting my plasma donation income. I ended up using https://taxr.ai to help me figure it all out. They have this feature where they analyze your specific situation and tell you exactly how to report different types of income. For plasma donations specifically, they confirmed it's taxable and showed me how to report it correctly. They also explained when it might count as self-employment vs. other income, which was really helpful since the IRS rules aren't super clear on this specific type of income. The system even gave me the exact lines and forms to use.

I just wanted to update after trying out that taxr.ai site that was mentioned. It was actually really helpful for my plasma donation situation! I described my donation schedule and payment structure, and it explained exactly how to report it. The best part was that it helped me figure out if I should treat it as self-employment income (Schedule C) or other income (Schedule 1) based on how regularly I donate and my intention. Since I go twice a week consistently with the specific purpose of making money, it recommended reporting as self-employment income, which I wouldn't have known. It also calculated my estimated self-employment tax so I wasn't shocked at tax time.

If you're having trouble getting a straight answer about your plasma donation income, you might want to try calling the IRS directly. I know, I know - getting through to them is practically impossible. I spent HOURS on hold last year trying to get clarification on a similar issue. That's until I found https://claimyr.com - they have this service that basically waits on hold with the IRS for you, then calls you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first, but when I got a call back with an actual IRS agent on the line within a couple hours (after previously waiting on hold myself for 3+ hours with no luck), I was amazed. The IRS agent I spoke with gave me the official word on how to report my unconventional income, which gave me way more confidence than the mixed advice I was getting elsewhere.

Ok I need to eat my words from my previous comment. I tried the Claimyr service after posting that skeptical response, and I'm honestly shocked that it worked. After 3 failed attempts to reach someone at the IRS on my own (being disconnected after 1+ hour holds each time), I got connected to an actual human IRS agent within 2 hours of using this service. The agent confirmed that plasma donation money is indeed taxable income, and gave me specific guidance based on my frequency and amount. She said since I'm doing it regularly with the intent to make money (rather than just occasionally), I should report it as self-employment income on Schedule C, which means I can deduct relevant expenses but also have to pay self-employment tax. This was way more helpful than the generic advice I was finding online!

Just FYI - I've been reporting my plasma donation income for years as "other income" on Schedule 1, and I've never had any issues. I make about $5,200 per year from it. I don't bother with Schedule C or claiming it as self-employment because I don't want to deal with quarterly estimated taxes or self-employment tax. Plus, the plasma center doesn't consider us "independent contractors" - they specifically say we're "donors" receiving "compensation" not "payment for services." The tax code is pretty gray on this specific area. As long as you report the income somewhere, you're probably fine.

Has anyone received a 1099 or any tax form from their plasma donation center? I've been donating for 3 years now and never received anything, which makes me think they don't report it to the IRS?

I went through this exact same situation last year and ended up consulting with a CPA who specializes in unusual income situations. Here's what I learned: The key factor is whether you're doing this as a "business activity" or just occasional compensation. If you're going regularly (like twice a week) with the primary purpose of earning income, the IRS is more likely to view this as self-employment income requiring Schedule C reporting. One thing that helped me decide: I tracked my time and expenses for a month. Between travel time, waiting at the center, and the actual donation process, I was spending about 4-5 hours per week earning that money. When I calculated my effective hourly rate and considered that I was doing it consistently for profit, it became clear this was more like a part-time job than occasional compensation. The downside of Schedule C is self-employment tax (15.3%), but the upside is you can deduct legitimate business expenses like mileage, which can add up if you're going twice weekly. For me, the mileage deduction actually saved me more money than the extra self-employment tax cost me. My advice: keep detailed records of everything - dates, amounts, mileage, time spent. This documentation will be invaluable whether you report it as other income or self-employment income.

This is such a helpful thread! I've been donating plasma for about 8 months now and have been putting off dealing with the tax implications. Reading through everyone's experiences, it sounds like the consensus is that it's definitely taxable income, but there's some flexibility in how to report it. I'm making around $300-400 per month from donations, so I'm probably looking at about $4,000 for the year - very similar to the original poster. Based on what @Ellie Kim shared about tracking time and expenses, I think I'm going to start keeping better records of my mileage and time spent. The plasma center is about 15 miles from my house, so those round trips twice a week could add up to a decent deduction if I go the Schedule C route. One question I have: has anyone dealt with this if you also have a regular W-2 job? I'm wondering if having self-employment income from plasma donations affects anything with my regular employment taxes or if it's completely separate. Thanks to everyone who shared their experiences - this is way more useful than the generic tax advice I was finding elsewhere!

I've been in a similar situation and wanted to share what worked for me. After reading through all these responses, I ended up taking a hybrid approach that might help others. I reported my plasma donation income as "Other Income" on Schedule 1 for the first year when I was only going occasionally (maybe once or twice a month). But when I ramped up to a consistent twice-weekly schedule specifically to earn money, I switched to reporting it as self-employment income on Schedule C. The deciding factor for me was realizing that I was treating it like a part-time job - I had set days I would go, I planned my schedule around donation appointments, and I was actively trying to maximize my earnings through bonuses. That felt more like running a small business than just receiving occasional compensation. One practical tip: I created a simple spreadsheet to track everything - donation dates, amounts received, mileage, and time spent. This made tax preparation much easier and gave me confidence that I had proper documentation. The mileage deduction alone saved me several hundred dollars, which more than offset the extra complexity of filing Schedule C. For anyone still unsure, consider your intent and regularity. If you're doing it systematically to generate income, lean toward Schedule C. If it's truly occasional and opportunistic, Schedule 1 other income is probably fine. Either way, definitely report it - the IRS considers all income taxable regardless of whether you get a 1099.

This thread has been incredibly helpful! I'm in almost the exact same situation as the original poster - made about $4,600 from plasma donations last year going twice weekly. After reading through everyone's experiences, I'm leaning toward reporting it as self-employment income on Schedule C since I've been treating it like a consistent income source. The mileage deduction alone seems worth it - my donation center is about 20 miles away, so that's roughly 4,160 miles per year at twice weekly visits. One thing I haven't seen mentioned yet is whether anyone has dealt with state tax implications for this type of income? I'm in California and wondering if there are any state-specific considerations for plasma donation income beyond just following the federal treatment. Also, has anyone ever been audited specifically related to plasma donation income? I'm probably overthinking this, but I want to make sure I'm bulletproof in my documentation and reporting method. The lack of 1099 forms makes me a bit nervous that the IRS might question how I'm calculating and categorizing this income if they ever look closely. Thanks again to everyone who shared their real-world experiences - this is so much more valuable than the generic tax advice you find on most websites!

I've been donating plasma for about 6 months now and this thread is exactly what I needed! I've been stressing about tax time because I wasn't sure how to handle this income. Based on everyone's experiences here, it sounds like the key factors are regularity and intent. I go twice a week pretty religiously and definitely treat it as income I can count on, so I'm thinking Schedule C is probably the right approach for me. One thing I wanted to add that might help others - I called my plasma center's customer service line to ask about tax documentation, and they confirmed they don't issue 1099s but they can provide a year-end summary of all your donations and payments if you request it. This might be helpful backup documentation alongside the prepaid card statements. Also, for anyone worried about the self-employment tax on Schedule C, remember that it's not just an extra cost - you're actually paying into Social Security and Medicare, which can increase your future benefits. My dad (who's a retired accountant) pointed this out to me when I was complaining about the extra 15.3%. It's not just money down the drain. Thanks to everyone who shared their real experiences - this community is so much more helpful than trying to navigate IRS publications alone!