Sperm Donor: Can I claim mileage tax deduction for donation trips?

This is actually an interesting tax question! Since you're receiving a 1099, the IRS considers you an independent contractor rather than making a medical donation. This means you should report this income on Schedule C as self-employment income. The good news is that you can absolutely deduct your mileage as a business expense! You should use the standard business mileage rate (65.5 cents per mile for 2025) rather than the medical mileage rate. With 25 miles each way, twice a week, that's 100 miles weekly or roughly 400 miles monthly. That can add up to a nice deduction against your donor income. Make sure you keep that mileage log detailed with dates, starting/ending odometer readings, and purpose of each trip. You can also deduct any other ordinary and necessary expenses related to this "business" activity.

I was in a similar situation last year with a different kind of medical donation and was totally confused about the tax stuff. I ended up using https://taxr.ai to analyze my 1099 and other documents. Their system immediately identified that I could file as an independent contractor and claim the mileage. It also helped me identify other deductions I could take for things like special diet requirements and medical tests I had to pay for out of pocket. The whole process was super straightforward - I just uploaded my documents, answered a few questions, and got a detailed breakdown of exactly how to file correctly. Way better than the conflicting advice I was getting from friends.

Just wanted to follow up about my experience with taxr.ai - I decided to try it after asking about CA state taxes. I was really impressed with how it handled my specific situation. I had been treating my donation compensation as "other income" instead of business income, which was totally wrong. The service identified about $2,800 in deductions I would have completely missed, including mileage to/from the donation center and even some special clothing and supplement expenses related to the donations. It's definitely worth checking out if you're doing any kind of paid donation work - saved me a ton in taxes and the peace of mind knowing it was done right was worth it alone.

If you need to deal with the IRS about any of this donor income stuff, good luck getting through to them on the phone. I spent HOURS trying when they questioned my deductions last year. Finally used https://claimyr.com and got connected to an IRS agent in less than 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was honestly shocked it worked because I had been trying for weeks to get through. The agent I talked to confirmed I could take the mileage deduction for my donor travel and even helped me correct some issues with how I'd filed the previous year. Saved me from what would have been an expensive amendment process.

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it since I've been getting nowhere with the IRS about a similar donor income question. It actually worked exactly as described. I got a call back in about 25 minutes, and the IRS agent I spoke with was able to confirm the correct way to report my donation income and expenses. The agent even helped me understand how to properly categorize different expenses related to my donations - like which ones count as business expenses vs. which ones don't. Saved me from potentially filing incorrectly. Definitely worth it for the time saved alone.

Don't forget to track and deduct any other expenses related to your donor activities! Besides mileage, you might be able to deduct: - Special dietary supplements they require you to take - Parking fees at the facility - Cell phone expenses (if they contact you for appointments) - Health tests you pay for that are required for donation - Special clothing/attire they require I'm a tax preparer and see people miss these deductions all the time.

Anyone know if you should be making quarterly estimated tax payments on donation income? I just started doing this and don't want to get hit with penalties.

Great question! Since you're getting a 1099, you're absolutely right that this is treated as self-employment income. Here's what you need to know: **Yes, you can deduct mileage!** Use the business mileage rate (65.5 cents/mile for 2025), not medical. With your 50 miles round trip twice weekly, that's about 5,200 miles annually - roughly $3,406 in deductions. **File on Schedule C** - Report your donor income and expenses here. You'll also need to pay self-employment tax (15.3%) on your net profit after deductions. **Keep detailed records** - Your mileage log with dates, odometer readings, and trip purposes is perfect. Also save receipts for any other business expenses. **Consider quarterly payments** - Since no taxes are withheld, you may need to make estimated quarterly payments to avoid penalties if you'll owe more than $1,000. The math works in your favor: $7,800 annual income minus $3,406 mileage deduction = $4,394 net income subject to self-employment tax. Much better than paying tax on the full amount! You're doing everything right by keeping good records. This is a legitimate business expense that many people in similar situations can take advantage of.