The petitioner entered into contracts to produce unfertilized eggs for transfer to infertile couples. The contracts characterized the payments as being for the petitioner's time, effort, inconvenience, pain and suffering and not in exchange for or purchase of eggs. The petitioner underwent numerous physical exams and self-administered painful hormonal injections. The petitioner suffered bruising and an eventual surgery to harvest the eggs. In total, the petitioner was paid $20,000 pursuant to the contracts for the tax year at issue, received a Form 1099 for the total amount but excluded the amount from income under I.R.C. Sec. 104(a)(2) as damage payments for pain and suffering. The IRS disallowed the deduction. The court agreed with the IRS, construing the payments as being received for personal services. The fact that the petitioner suffered physical pain or injury during the performance of rendering services pursuant to the contract did not change the result. The payment was not received on account of personal injuries or sickness, but rather for services. The court noted that the petitioner voluntarily contracted to be paid to produce eggs via a process that involved pain and suffering. Perez v. Comr., 144 T.C. No. 4 (2015).