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(1) Timmy and Tammy were so convinced that they never wanted to have kids that Timmy had a vasectomy back in 2016. Tammy later had
(1) Timmy and Tammy were so convinced that they never wanted to have kids that Timmy had a vasectomy back in 2016. Tammy later had a change of heart and convinced Timmy to have a vasectomy reversal, which he finally got around to in January 2019. Soon after that, however, Tammy was told by her doctor that she would be at serious risk if she tried to carry a baby to term. In early February 2019 Rich Uncle died, leaving Timmy and Tammy $1 million. Having no medical insurance, they decided to use part of that money to go the IVF route, which now would have to include a surrogate (gestational carrier). Here are the total out-of-pocket expenses Timmy and Tammy incurred during 2019 toward having their first child in December 2019: $6,000 - Timmy's vasectomy reversal $3,500 - doctor and lab fees for preliminary consultation(s) and workup $7,500 - "basic" IVF lab fee $16,000 - egg retrieval (Tammy), fertilization, and implantation (surrogate) $18,000 - all-inclusive surrogate medical expenses (gestation & delivery) $60,000 - surrogate fee $9,000 - agency fee (surrogate finder/arranger) $7,500 - surrogate criminal background check and psychological services $4,000 - Rx pharmaceuticals $19,000 - attorneys' fees for preparation of surrogate contract, liability and other waivers, establishment of parentage documents, etc. 490 miles - personal car trips to doctors, hospitals, IVF lab, etc. What total medical expense amount, if any, will you enter into your tax return preparation software for Timmy and Tammy's 2019 MFJ return on these facts? (Ignore the % of AGI floor.) (2) You're preparing Jack and Jonnie's 2019 MFJ tax return. Jack and Jonnie, together with their four kids, three dogs, two cats, one parrot - oh, and Jack's mommy (yay!) - live a couple of blocks below Campbell, just south of UTD. Their total 2019 income was $400,000. The bought a brand new car in June 2019, price $46,000 ($4,000 down, $42,000 financed on a 3-year note) What total sales tax number will you enter into your 2019 tax return preparation software for MFJ Jack and Jonnie? (Or, if automated, what sales tax number will the software generate?)
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