Tax Credit for Kidney Donors
The States of Idaho and Utah have taken the lead in providing tax credit relief for un-reimbursed expenses related to organ donation. A Federal Tax Credit for Kidney Donors is part of a bill currently in consideration in Congress.
There is a great deal of expense involved in the process of live organ donation. Much of this expense is not going to be covered by Medical Insurance. Although policies and exclusions differ, the bottom line is that the organ donor is usually hurt financially by his altruistic act. The States of Utah and Idaho are two that have recognized this problem already and offer tax credits to help offset this cost. There is no nationwide “Tax Credit of Kidney Donors.”
In the 2007 session of Congress, a bill was introduced that would modify the tax code and allow incidental expenses to be covered as Medical expenses in the case of donor transplants. It would also allow a tax credit for certain expenses that were not recovered through insurance. The idea is to free the Kidney, or other organ donor, from as much financial loss as possible as a result of their generosity.
The Bill that would create this Tax Credit for Kidney Donors was HR1035, and its passage through the committee process was slow. At the current time the bill is on hold. It is unlikely that any action will be taken on it in time for even the 2008 tax year. It must be remembered that an organ transplant is a Medical procedure. Much of the costs associated with the procedure would be considered deductible medical expenses if they were not covered by insurance.
The thrust of HR1035 was more directed at what might be called incidental expenses such as lost wages from missing work, or hotel stays prior to the operation. These types of expenses are not normally considered “medical” expenses by either insurance companies or by the IRS. Advocates of Organ Donation point out that these expenses, which almost always go un-reimbursed, can add up to thousands of dollars and put a strain on the donor.
They also point out that there are more people waiting on lists for donations of organs such as kidneys than there are donors stepping forward to allow their own organs to be taken while they are still living. The emotional impact of the donation process can not be underestimated. The kidney is a unique organ because of its duplication. We can get along with just one, which gives us a spare with could give to save another life. This is not an easy choice to make, but once it is made, it should not result in financial ruin. This is an area that should be addressed and HR1035 is a start. Interested people can track this bill’s progress through their own representatives in Congress.