Federal and State Tax Deduction Opportunities

 

FEDERAL

 

You may deduct medical expenses accrued during the living donation process from your federal income tax. You are not allowed to deduct your donation under “charitable donation.” The authorized federal deduction falls under medical expenses.

 

IRS Publication 502, sub folder: Transplants

 

You can include in medical expenses amounts paid for medical care you receive because you are a donor or a possible donor of a kidney or other organ. This includes transportation¹.

 

You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. This includes transportation¹.

 

Organ Donation and Recovery Improvement Act – April 2004, [H.R. 3926] (Sec. 3)
 
Amends the Public Health Service Act to authorize the Secretary of Health and Human Services to award grants to States, transplant centers, qualified organ procurement organizations or other public or private entities to reimburse travel, subsistence, and incidental non-medical expenses incurred by individuals toward making living organ donations.

 

PAID TIME OFF

Federal employees (some state employees too) are given 30 paid days off for donating an organ.

 

STATE

Below, a list of states currently offering state tax deductions for living donors. Donors can deduct up to $10,000 of living donation expenses: travel, lodging, and lost wages.
 
Example of a state deduction:
 
Ed Nicholson, of Eau Claire, Wis., was the first person to take advantage of his state’s law. He lost about $3,200, mostly in missed wages, in donating a kidney to his brother; the tax law let him recoup a few hundred dollars. That’s typical of the law’s savings².

 

STATE
LEGISLATION

Arkansas

Up to $10,000 state tax deduction

Georgia

Up to $10,000 state tax deduction

Idaho

Up to $5,000 income tax credit

Iowa

Up to $10,000 state tax deduction

Louisiana

Up to $10,000 state tax deduction

Maryland

30 paid days off for state employees

Massachusetts

Pending legislation: $10,000 state tax deduction, (SD 1105, authored by Sen. Spilka)

Minnesota

Up to $10,000 state tax deduction

Mississippi

Up to $10,000 state tax deduction

New Mexico

Up to $10,000 state tax deduction

New York

Up to $10,000 state tax deduction

North Dakota

Up to $10,000 state tax deduction

Ohio

Up to $10,000 state tax deduction

Oklahoma

Up to $10,000 state tax deduction

Oregon

 25 percent of the bone marrow donor expense paid or incurred during the tax year by an employer to provide a program for employees who are potential bone marrow donors or who actually become bone marrow donors

Rhode Island

Up to $10,000 state tax deduction

South Carolina

Up to $10,000 state tax deduction

Utah

Up to $10,000 state tax deduction

Virginia

Up to $10,000 state tax deduction; 30 paid days off for state employees

Wisconsin

Up to $10,000 state tax deduction

Sources:
1. “Publication 502 (2015), Medical and Dental Expenses.” Publication 502 (2015), Medical and Dental Expenses. IRS, 2015. Web. 08 Mar. 2016.
2. Feifer, Jason. “Paying Big to Be A Donor.” Washington Post. The Washington Post, 20 Mar. 2007. Web. 08 Mar. 2016.
3. Fishman, Stephen, J.D. “Are There Tax Incentives for Organ Donations? | Nolo.com.” Nolo.com. NOLO, n.d. Web. 07 Mar. 2016.
4. “Transplant Living | Financing Living Donation | Legislation.” Transplant Living | Financing Living Donation | Legislation. N.p., n.d. Web. 07 Mar. 2016
5. “Tax Credit.” SpringerReference (n.d.): n. pag. Living Kidney Donors. Web. 7 Mar. 2016.