Tax Rates Reflect Daily Life: Difference between revisions
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Revision as of 03:58, 29 July 2026
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Defenders in the IRS position would say it returns to Section 61. The waitress provided a service for me, and I paid for it. Compensation for services is taxable. End of deal.
Julie's total exclusion is $94,079. On her American expat tax return she also gets to claim a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. income tax.
Regarding egg donors and sperm donors there was an IRS PLR, private letter ruling, saying could be deductible for moms and dads as a medical expense. Since infertility is a medical condition, helping along getting pregnant could be construed as medical transfer pricing treat.
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