If the client donated one time egg and received income $87,000 and also in this situation there was some minor $7000 expenses so can we show this scenario in tax return?

Yes, you can and should include this scenario on your tax return. The income you received for donating an egg, which is considered compensation for services, should be reported as income. The $87,000 you received would typically be reported as miscellaneous income, and you would report it on Schedule 1 (Form 1040), line 8z, or directly on Form 1040 if you received a Form 1099 for the payment. Regarding the $7,000 in expenses, if these are ordinary and necessary expenses directly related to the egg donation process, you may be able to deduct them. However, it's important to note that the Tax Cuts and Jobs Act of 2017 suspended miscellaneous itemized deductions for tax years 2018 through 2025. This means that if these expenses are considered miscellaneous itemized deductions, you would not be able to deduct them on your federal tax return during this period. If the expenses are considered medical expenses, you might be able to deduct them as a medical expense if you itemize deductions and if the total medical expenses exceed 7.5% of your adjusted gross income (AGI). You would report this on Schedule A (Form 1040). It's important to keep receipts and detailed records of all expenses related to the egg donation. Consulting with a tax professional is recommended to ensure that you are reporting the income and expenses correctly and taking advantage of any deductions that may be available to you.

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