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Up until now, it is not too transfer pricing perplex. 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 price. Since infertility is a medical condition, helping along getting pregnant could be construed as medical treat. The increased foreign earned income exclusion, increased income tax bracket income levels, and continuation of Bush era lower tax rates are excellent news for all your American expats.
Tax rules for expats are complex. Get the professional help you have to have to file your return correctly and minimize your You.S. tax.