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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15308
Experience:  15years with H & R Block. Divisional leader, Instructor
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I live in Ohio and donated eggs in 2015. I received $10,000.

Customer Question

I live in Ohio and donated eggs in 2015. I received $10,000. The form for the donation is a 1099-misc. I was trying to file my return. My refund was supposed to $4800 and dropped to $1800 after adding the 1099 form. I realize I have to pay taxes on my donation, but $3,000 seems ridiculous for $10,000 of income. It was technically counted as income so it calculated that at making $22,500 I got a $4,800 refund, then adding in the extra $10,000 for a total of $32,500 income I'm only getting $1,800 back. Isn't there some way around this, some other way to file this? If I had only made the $10,000 I surely wouldn't be paying $3,000 in taxes, which is why I don't understand.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


Unfortunately your situation has already been settled by a tax court case, the Tax Court decided in Perez v. Commissioner, 144 T.C. 4, (2015), and concluded definitively that these amounts represent taxable income.

When the amount is added to your income then that increased all. If you look there is most likely Self Employment tax applied as well.

This is the portion of the FICA tax normally paid by an employer for an employee. Those that receive payments outside employment have to pay all.

If you had any expenses yourself those may reduce your income and the tax.

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