The truth is, there is no definitive answer to this question. However, as a general rule, it depends on whether it is considered income by the IRS or not. In case it is, then yes, as a surrogate you will be required to pay income taxes both on a federal and state level.
If your contract lists the compensation as pain and suffering for being pregnant, theoretically it should not be taxed.
Read the full article on: Surrogate Mother Pay – How Much Does a Surrogate Get Paid? ( 87).
