Complete guide to reporting plasma donation income on your tax return. Learn when you'll receive a 1099, how to legally reduce your tax bill, and avoid costly IRS penalties.
Despite the term "plasma donation," the IRS doesn't view your payments as charitable gifts. Here's why you owe taxes:
The IRS considers plasma payments as compensation for time and inconvenience, not a true donation. You're being paid for a service, which makes it taxable income under Section 61 of the Internal Revenue Code.
IRS Publication 525: "You must include in gross income all amounts you receive as pay for work you do... unless a law specifically excludes the income."
True charitable donations (like donating blood to Red Cross) aren't paid. Plasma centers pay you $50-$120 per visit based on weight and frequency. This direct payment for your time triggers tax liability.
Major plasma centers (CSL Plasma, BioLife, Grifols, Octapharma) file 1099-NEC forms with the IRS for donors earning $600+. The IRS receives a copy and matches it against your tax return. Failing to report triggers automatic audits.
Don't wait for a 1099. Keep a spreadsheet of all plasma payments throughout the year. Many donors earn just under $600 from multiple centers, assuming they don't have to report — this is illegal and risky.
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You have two primary options for reporting plasma donation income. Choose Schedule C for maximum deductions.
Report plasma income as self-employment income on Schedule C (Form 1040).
Gross income: $5,000
Mileage deduction: -$1,200 (30 miles × 60 trips × $0.67)
Other expenses: -$200
Net taxable income: $3,600 (28% less tax)
Report as "Other Income" on Schedule 1 (Form 1040), Line 8z.
Not receiving a 1099 does NOT mean you don't owe taxes. The IRS requires you to report every dollar of income, regardless of whether you receive a tax form.
| Earnings | 1099 Issued? | Must Report? |
|---|---|---|
| $400 from CSL Plasma | ❌ No | ✅ Yes |
| $500 CSL + $400 BioLife = $900 | ❌ No | ✅ Yes |
| $750 from Grifols | ✅ Yes | ✅ Yes |
| $50 one-time donation | ❌ No | ✅ Yes |
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Pre-filled Schedule C template, mileage tracker spreadsheet, deductible expense checklist, and quarterly tax calculator. Reduce your tax bill by $500-$1,500.
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2026 IRS rate: 67 cents per mile
Track every trip to and from the plasma center. This adds up fast.
Example:
20 miles round trip × 60 visits = 1,200 miles
1,200 × $0.67 = $804 deduction
What you need: Mileage log with dates, starting/ending odometer readings, and purpose of trip. Apps like MileIQ or Everlance automate this.
Fully deductible: Parking fees, meters, garage costs, and highway tolls
Example:
$5 parking × 60 visits = $300 deduction
What you need: Keep receipts or take photos of parking meters/tickets. Digital parking apps provide automatic records.
Deductible if required for donation eligibility:
⚠️ Regular meals and general vitamins are NOT deductible.
Post-donation care items:
Record keeping: Save Amazon receipts or pharmacy invoices.
Your tax liability on plasma income depends on two factors: self-employment tax (15.3%) and your marginal income tax rate.
This covers Social Security (12.4%) and Medicare (2.9%). All plasma donors pay this rate on net earnings over $400.
Depends on your total household income. Plasma earnings are added to your wages, investments, etc.
Plasma income: $2,000 (gross)
Deductions: -$600 (mileage + parking)
Net income: $1,400
Self-employment tax: $1,400 × 15.3% = $214
Income tax (22% bracket): $1,400 × 22% = $308
Total tax owed: $522
Effective rate: 26.1%
Plasma income: $5,000 (gross)
Deductions: -$1,400 (mileage, parking, supplements)
Net income: $3,600
Self-employment tax: $3,600 × 15.3% = $551
Income tax (24% bracket): $3,600 × 24% = $864
Total tax owed: $1,415
Effective rate: 28.3% | Net take-home: $3,585
Plasma income: $8,000 (gross)
Deductions: -$2,200 (optimized expenses)
Net income: $5,800
Self-employment tax: $5,800 × 15.3% = $887
Income tax (24% bracket): $5,800 × 24% = $1,392
Total tax owed: $2,279
Effective rate: 28.5% | Net take-home: $5,721
If you'll owe more than $1,000 in taxes, consider making quarterly estimated tax payments (Form 1040-ES) to avoid underpayment penalties. Due dates: April 15, June 15, September 15, January 15.
Beyond federal taxes, most states tax plasma income as regular income. However, 9 states have no income tax — a significant advantage for plasma donors.
Tax savings: On $5,000 plasma income, you save $150-$650/year compared to high-tax states.
Example: On $5,000 plasma income in California, you'd pay an additional $665 in state taxes (13.3% bracket).
Most states follow federal tax treatment. If you report plasma income on your federal Schedule C, you'll also report it on your state return. States with income tax typically offer similar deductions for mileage and business expenses.
Why it's wrong: ALL income is taxable, regardless of whether you receive a tax form.
Fix: Track all payments yourself and report the total on Schedule C or Schedule 1.
Why it's costly: Without deductions, you pay 15.3% + income tax on gross earnings.
Fix: Use a mileage app (MileIQ, Everlance) and save all receipts for parking, supplements, and supplies.
Why it's risky: You may owe thousands in taxes with no savings, plus underpayment penalties.
Fix: Set aside 25-30% of each plasma payment in a separate "tax savings" account.
Why it's dangerous: Deducting regular meals, clothing, or health insurance triggers IRS audits.
Fix: Only deduct expenses directly related to plasma donation (mileage, parking, donation-specific supplements).
Why it hurts: Underpayment penalties can add 5-10% to your tax bill.
Fix: If you'll owe $1,000+, make quarterly payments using Form 1040-ES.
Why it's expensive: Schedule 1 doesn't allow expense deductions, increasing your tax by hundreds of dollars.
Fix: Always use Schedule C to claim mileage and other business expenses.
Yes. Plasma donation payments are considered taxable income by the IRS. Despite the term "donation," you're being compensated for your time, which makes it taxable as self-employment income or other income. You must report all plasma earnings, even if you don't receive a 1099 form.
You'll receive a 1099-NEC form if you earned $600 or more from a single plasma center during the tax year. If you earned less than $600, you likely won't receive a 1099, but you're still legally required to report all income to the IRS.
Report plasma income on Schedule C (Form 1040) if you treat it as self-employment income, or on Schedule 1, Line 8z as "Other Income." Schedule C allows you to deduct related expenses like mileage, which can reduce your tax liability.
If you report on Schedule C, you can deduct mileage to and from the plasma center (67 cents per mile for 2026), parking fees, supplements purchased specifically for donation eligibility, and medical supplies. Keep detailed records and receipts.
Your tax liability depends on your total income and tax bracket. Expect to pay 15.3% in self-employment tax plus your marginal income tax rate (10-37%). For example, on $5,000 in plasma income, you might owe $765 in self-employment tax plus $500-$1,850 in income tax, depending on your bracket.
Failing to report plasma income is tax evasion. The IRS receives copies of all 1099 forms and can match them to your return. Penalties include 20% accuracy-related penalties, interest on unpaid taxes, and potential criminal charges for willful tax evasion.
Yes. Plasma donors in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming pay no state income tax on plasma earnings. You'll still owe federal income and self-employment taxes, but you avoid an additional 3-13% state tax.
If plasma donation is your only self-employment income and you'll owe more than $1,000 in taxes, consider making quarterly estimated tax payments to avoid underpayment penalties. Use IRS Form 1040-ES to calculate and submit quarterly payments.
Complete 2026 pay comparison of CSL Plasma, BioLife, Grifols, and other major centers.
See what plasma donors earn in all 50 states, including state-specific tax implications.
Detailed breakdown of CSL Plasma compensation, bonuses, and earnings potential.
Answers to common questions about eligibility, safety, and maximizing earnings.
Tax information compiled from official IRS publications and federal tax code. Information verified January 2026. Consult a licensed tax professional for personalized advice.
⚖️ Tax Disclaimer: This content is for informational purposes only. It is not professional tax advice. Always consult a qualified CPA or tax professional before making tax decisions.