Plasma Donation and Taxes: What You Actually Owe

The tax situation around plasma donation is confusing, and centers don't help. Here's the honest breakdown of what you owe, what you can deduct, and how to stay on the right side of the IRS.

Is Plasma Income Taxable?

Yes. Despite what you might have heard, plasma donation payments are taxable income. The IRS treats them as payment for a service (selling plasma), not as a medical donation. If you earn more than $600 from a single center in a year, they may issue you a 1099-NEC.

The $600 Threshold — and Why It Doesn't Matter

Many donors think they're safe if they stay under $600 at any one center. This is wrong. The legal threshold for receiving a 1099 is $600, but all income is taxable regardless of whether you receive a form. The IRS requires you to report it.

What You Can Deduct

If you treat this as self-employment income (which it legally is), you may be able to deduct mileage to and from the donation center, any supplies you purchase specifically for donation, and potentially a portion of meals if you travel for higher-paying centers.

Setting Aside Money

A safe rule: set aside 15-25% of your plasma income for taxes. If you're in a lower income bracket, 15% is usually sufficient. If this is supplemental income on top of a regular job, calculate your combined marginal rate and set aside accordingly.