Federal and State Tax Deduction Opportunities




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.



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



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.




Up to $10,000 state tax deduction


Up to $10,000 state tax deduction


Up to $5,000 income tax credit


Up to $10,000 state tax deduction


Up to $10,000 state tax deduction


30 paid days off for state employees


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


Up to $10,000 state tax deduction


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


Up to $10,000 state tax deduction


Up to $10,000 state tax deduction


 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


Up to $10,000 state tax deduction


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


Up to $10,000 state tax deduction

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.