HOW DOES SURROGATE COMPENSATION WORK?

Becoming a surrogate is a life-changing decision. As a surrogate, you provide intended parents with the hope of growing their families and the opportunity to pave their path to parenthood. While the emotional rewards of surrogacy are immense, it is also important to understand the financial aspects of the journey. 

Surrogate compensation is designed to support you throughout every stage, ensuring that your time, effort, and commitment are recognized. Payments are structured to cover medical expenses, lost wages, and other costs incurred during the process, allowing you to focus on your health and the well-being of the child you are carrying.

If you're considering becoming a surrogate, you may have questions about how and when payments are distributed, what expenses are covered, and how compensation impacts taxes.

SURROGACY PAYMENT SCHEDULE: A STEP-BY-STEP BREAKDOWN

Growing Generations surrogates are from the top 2% of our applicants. We are proud of being one of the highest-paying surrogacy agencies around because we know our surrogates are among the best out there. We appreciate your incredible generosity and altruism, and we want to make sure you feel valued.

Surrogate compensation is typically distributed in structured payments throughout the surrogacy journey. The total compensation varies based on the agency, location, and surrogate’s experience.

1. SIGNING AND SCREENING PHASE (INITIAL PAYMENTS)

Some surrogacy agencies offer an initial signing bonus once the contract is completed, providing financial support at the beginning of the journey. Additionally, medical screening reimbursement is included to cover travel, lost wages, and other costs associated with the required medical evaluations.

2. START OF MEDICATION AND EMBRYO TRANSFER

Once the surrogate begins taking fertility medications to prepare for the embryo transfer, a payment is issued as part of the compensation plan. This acknowledges the time and effort required to undergo the medical preparation process. Following the embryo transfer, another payment is provided to recognize the surrogate’s commitment and the medical procedures involved in attempting to achieve pregnancy.

3. PREGNANCY CONFIRMATION (MONTHLY PAYMENTS BEGIN)

After a fetal heartbeat is confirmed, surrogates receive a special payment marking the milestone. At this point, the monthly base compensation begins. These payments are typically issued in equal installments, beginning at the end of the first trimester. Additional allowances may also be provided for maternity clothing, medical co-pays, and travel expenses, ensuring the surrogate is financially supported during the pregnancy.

4. THIRD TRIMESTER AND DELIVERY

Compensation continues through the final months of pregnancy, with monthly payments extending until birth. Upon delivery, surrogates receive the remaining balance, recognizing the completion of their journey. In cases where a surrogate undergoes a C-section or carries multiple births, additional compensation is provided to account for the increased medical risks and physical demands. Post-delivery recovery payments may also be issued to support the surrogate’s healing process after childbirth.

GROWING GENERATIONS’ SURROGATE COMPENSATION

At Growing Generations, in addition to base compensation, we reimburse surrogates for associated expenses. Our surrogate pregnancy compensation package offers up to $70,000 plus actual lost wages for first-time surrogates with additional benefits of up to $35,000. Our flat-rate model is easy to manage and accounts for variability in surrogate pay.

Our first-time surrogate minimum base compensation is as follows:

• $75,000 – California, Nevada, Oregon, Washington, Connecticut, Delaware,      Massachusetts, New Hampshire, Rhode Island, and Vermont

• $70,000 – All other eligible states

Additionally, all surrogates are eligible to receive up to $5,000 in bonuses before embryo transfer:

• $1,500 Screening Incentive

• $1,500 Contract Signing Incentive

• $2,000 Medical Start Incentive

Since they’ve completed at least one successful surrogate journey, experienced surrogates receive additional compensation. We offer them a $10,000 increase per successful journey.

During the entire surrogacy journey at Growing Generations, surrogates have the support of our finance team. At the beginning of the surrogacy admissions process, surrogates will receive a personalized surrogacy benefit package and financial handbook. The handbook outlines all the payments and benefits surrogates can expect to receive during their surrogate journey and how to request them. Surrogacy pay and compensation will be in the form of direct deposits or mailed checks.

DOES SURROGACY MONEY COUNT AS INCOME?

One common question is whether surrogacy compensation is considered taxable income. The answer depends on various factors, including how the payments are classified in the surrogacy contract and IRS regulations.

IS SURROGACY COMPENSATION TAXED?

As a surrogate, it’s important to understand how your compensation may be reported for tax purposes. In some cases, surrogacy payments are taxable income, while in others, they may be categorized as reimbursements for medical expenses.

When it comes to IRS reporting, surrogates may receive a 1099 form from the surrogacy agency, which would require them to report their earnings as taxable income. If a surrogate receives a 1099 form, they should consult a tax professional to understand their obligations and potential deductions.

Additionally, some surrogates may be able to deduct medical-related costs associated with the pregnancy. Expenses directly related to medical care, such as travel to doctor appointments or medications, could be deductible depending on the surrogate’s specific tax situation. Keeping detailed records of all expenses can be helpful when filing taxes.

State tax laws also play a role in how surrogacy compensation is taxed. Tax obligations may vary based on where the surrogate resides, as some states may have specific guidelines for classifying surrogacy earnings. Surrogates should research their state’s tax laws or speak with a financial expert to ensure compliance with all regulations.

UNDERSTANDING YOUR SURROGACY COMPENSATION

Many surrogates wonder how payments will be structured and whether they will receive a lump sum or scheduled payments. An agency’s surrogacy payment plan ensures that you receive financial support at key milestones throughout the journey, covering medical costs, travel expenses, and compensation for your time and effort.

Understanding the surrogacy payment schedules, financial planning, and tax implications is important before starting your journey as a surrogate. If you have further questions about surrogacy compensation, financing options, or tax obligations, consult a professional for personalized advice.

If you are interested in becoming a Growing Generations surrogate, contact us for more information.