> no you don't, i work at a plasma donation center and on our "welcome
> letter" to new donors it clearly states donors are being compensated
> for their time, not for their plasma since it is technically a donation
I've seen this stated before by plasma places, but I've seen numerous references related to the IRS that state otherwise when it comes to the taxability
Basically, even if you "compensate someone for their time", it is still income. So, they can consider the plasma itself to be a donation (because you can't legally sell body organs in the USA), but that doesn't change the INCOME status.
So, I think the point of that letter is not about the TAX ramifications. It's about the legal aspects of selling your blood. They are just stating that they aren't buying your plasma -- because THAT has legal issues. Instead, you are DONATING the plasma and they are paying you for your TIME.
So, again, that statement is about the legal issue with donating plasma -- not the TAX issues of being paid for it.
If you are paid over $600 (for your "time"), then they would have to issue you a 1099-MISC by law -- and you'd have to report it on your taxes as income. [One source that mentions this. Another here where it makes it clear that if you do it enough, you even have to consider it self-employment income!
If you are paid under $600, then they don't have to report anything to the government -- and whether or not you report it yourself is your own call.
Note: All that being said, there seems to be some weird exception if you donate to a not-for-profit plasma center. I can't find enough info to confirm it. These seem to be rare though -- most plasma centers are for-profit -- in which case, all of the above certainly applies and they should be sending 1099-MISC to anyone that gets paid over $600 for their time.
"I love you for never believing in what I say."
- Blood, In This Moment