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ANTIOCH, CA – DECEMBER 25: Christy Ouimet holds her son Matthew, 10, wearing a button with a photo of donor Brandon on Saturday, December 25, 2021, at her home in Antioch, California. ) display ornaments. Matthew and his sister Molly, 18, both have primary hyperoxaluria type I, a rare blood disorder, and are waiting for a kidney transplant. (Jane Tyska/Digital First Media /East Bay Times, Getty Images)
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Over 103,223 men, women and children Currently on the national transplant waiting list. 17 of them will die today. And 17 more people will die tomorrow. reason? There aren't enough organ donors to say yes. Michigan's new tax credit aims to change that.
deceased donor
When we think of organ donation, we tend to think of donation after death. This is because some organs, such as the heart, cannot be transplanted using living donors. Last year, just over half (about 57%) of all organ transplants came from deceased donors.
Deceased donation, as the name suggests, is the donation of organs, corneas, or tissue at the time of the donor's death. It can only occur after death has been declared by a medical professional not involved in the donation or transplantation process. In most states, you can let people know you want to be a donor by registering through the Department of Transportation (if you do this, your driver's license will usually show a symbol, such as a heart). You can also register through the National Donate Life Registry. DonateLife.net or RegisterMe.org.
live donor
Most donations came from deceased donors, but last year about four in 10 came from living donors.
Living donors donate tissues such as skin, bone (after knee and hip replacement surgery), cells, blood, platelets, and bone marrow, as well as organs and tissues such as part of the liver, part of the lung, pancreas, and intestines. can. . You can also donate your kidney, which is the most commonly donated and most in-demand organ. About 85% of people waiting for a transplant, or about 90,000 patients, are waiting for a kidney.
In 2023, more than 6,900 living donor transplants will be possible. To be eligible, living donors must be healthy and at least 18 years old (in some cases, they may need to be 21 years old). Donating can be expensive, so having access to resources can also be helpful. Donors typically do not have to pay any costs, and are often covered by the recipient's insurance, but associated costs such as travel, accommodation, and lost wages due to unemployment can discourage potential donors. There is a gender.
State tax incentives
Currently, states such as Michigan are offering tax breaks in hopes of encouraging donations. Michigan Governor Gretchen Whitmer signed it this month. House Bill 4361 This will allow living organ donors to receive a one-time credit of up to $10,000 starting in 2025. This credit is intended to reimburse living organ donors for related costs.
In Michigan, this credit covers costs such as child care, transportation, lodging, and lost wages. Donors can claim the deduction in the tax year of the surgery or in the tax years before or after the surgery. This is non-refundable. In other words, if the amount of the credit exceeds the taxpayer's tax liability for that tax year, the portion of the credit that exceeds the tax liability will not be refunded.
AKF President and CEO Laverne A. Burton said, “With the current lack of kidneys available for kidney failure patients in need, we want to step up and give the gift of life.'' It's important to support people.” new law. “Unfortunately, too many Americans are unable to donate their organs due to the out-of-pocket costs associated with organ donation, which is why laws like HB 4361 are so important. I am grateful for the efforts of Congressmen to reduce barriers to organ donation, which will ultimately save lives in Michigan. ”
The states are: Arkansas, Colorado, Connecticut, Georgia, Idaho, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, Wisconsin, and the District of Columbia.
Many states offer tax incentives for living organ donation.
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(Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not impose state income taxes on individuals, so tax breaks are generally not beneficial.)
The average tax credit is capped at $10,000. Most Americans pay an average of 8.9% of their income in state taxes, so the potential tax savings is about $890.
Not all breaks directly benefit donors. In some states, such as Pennsylvania, the tax benefits are not specific to the donor, but to the donor's employer. Employers are entitled to a tax credit equal to the wages paid to employees who are on leave for organ donation and to employees who are hired on a temporary basis.
federal law
For federal income tax purposes, costs associated with the donation may be deductible as medical expenses on a taxpayer's statement. Even when looking at each item, there are still hurdles to clear. There is a “floor” for medical expenses, and a certain level must be reached in order for the expenses to be deducted. Currently, you can only deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI) on line 11 of your 2024 Form 1040.
Please remember. Most taxpayers do not itemize their deductions and instead claim the standard deduction. The standard deduction for 2025 is $15,000 for individuals and married couples filing separately and $30,000 for married couples filing jointly (heads of households can claim $22,500).
Is there an option to cover costs if tax breaks are not available? Some organizations, such as the National Living Donor Assistance Center, may offer living donors financial assistance to help pay costs. there is.
The federal government also has programs to help. Although these redemption rules are not stated in the tax law, title 42 (Title 42 focuses on public health, including Medicare and Medicaid). A relatively new rule expands the range of eligible reimbursable expenses for living organ donors to include travel, lodging, food, and living expenses such as lost wages, child care, and elder care expenses. . Reimbursement is not allowed if the donor is able to receive funds from a state compensation program, an insurance contract, a federal or state health benefits program, an entity that provides health care services on a prepaid basis, or an organ recipient.
Some employees at the federal level also have benefits. Specifically, federal employees are entitled to 30 days of paid leave for organ donation and seven days for bone marrow donation. Some states also have medical leave laws that apply to living organ donation.
Although donations are encouraged, selling organs is not an option. As part of the National Organ Transplant Act, it is illegal to “obtain, receive, or otherwise transfer human organs for valuable consideration.” (Of course, just because something is illegal doesn't mean it's tax-free. Income is still income, and income earned from illegal activities is reportable and taxable.) Ask Al Capone please.)
What is the best course of action? Please consult an expert. If you have questions about becoming a living donor and know someone you would like to help, ask for the transplant program's contact information. If you would like to donate to help someone you don't know, please contact a transplant hospital (you can find a list of transplant hospitals) here).
