GC Processing Amount Tax Deductable?

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485indiaEB3

Registered Users (C)
Dear Friends,

I have a question whether GC Processing fees and Attorney Fees Tax deductable. I need more information in this.


Thanks in advance for you replies
 
I am a tax consultant (yawn) and know of no way that they would be considered tax deductible. They are personal expenses which do not fall into any of the itemized deduction categories as far as I can tell. If anyone has deducted them please share.

Thanks.
 
My CPA deducted amount I paid to attorney and INS fees (prob) for tax. I am sure you can deduct all legal fees you pay to attorney, CPA etc.. Thats what my CPA did...
 
Well, the reason why you apply for the GC is for you to continue your employment. If you complete the years on your H1, you *have* to get a GC to continue employment. So, it's a mandatory expense that you incur as part of your employment.

As long as your employer doesn't reimburse you for it, this seems pretty close to what an "employment-related expense (for tax purposes)" is all about.

-- alaknanda
 
My CPA also deducted all related expenses as unreimbursed business expense. This is because all expenses done for your job purposes are considered tax deductible. Like further education for yourself to help you in your career.
 
Following that logic, one might also consider deducting his/her grocery bills, water bills, heating bills from the taxable income.. One can argue (quite convincingly) that being hungry, thirsty, unwashed, etc. would adversly impact his/her work performance and, thus, those are essential for the employment.

I'm not saying that it cannot be done. Just a trifle iffy..
 
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Though I am sick of the ways corporates handled their bahi-khatas, if u want to escape taxes, move over to Panama (so called tax heaven).

Else, kill the CPA, fill the forms urself and enjoy the life with whatever is left.
 
This is what I found regarding "Unreimbursed Employee Expenses". The list of things that can be deducted reproduced from IRS Publication 529

- Business bad debt of an employee
- Business liability insurance premiums
- Damages paid to a former employer for breach of an employment contract
- Depreciation on a computer or cellular telephone your employer requires you to use in your work
- Dues to a chamber of commerce if membership helps you do your job
- Dues to professional societies
- Education that is employment related
- Home office or part of your home used regularly and exclusively in your work
- Job search expenses in your present occupation
- Laboratory breakage fees
- Licenses and regulatory fees
- Malpractice insurance premiums
- Medical examinations required by an employer
- Occupational taxes
- Passport for a business trip
- Repayment of an income aid payment
- Research expenses of a college professor
- Subscriptions to professional journals and trade magazines related to your work
- Tools and supplies used in your work
- Travel, transportation, entertainment, and gift expenses related to your work
- Union dues and expenses
- Work clothes and uniforms if required and not suitable for everyday use

I do not think that Visa processing is part of that list.
 
Try to deduct & see how the IRS responds. Either they'll accept it or they'll deduct the difference from your refund/bill you. Althoug am qiuite certain that it will be permitted as a deduction, atleast the processing fee to the INS. Not too sure about attorney fees though.
 
I am going to look into this further tomorrow - a coworker has my book which would enlighten me further. I really do not see it allowable as a business expense though.

These expenses are usually examined by the IRS and may increase the chance of an audit.

I will look more closely at the rules tomorrow and report back.

Have a good evening everyone :)
 
hey Scotgirl

If you find out something affermative please let us all know; it will be a big chunk to write off.
Have a Good weekend.
 
I talked to a couple of my colleagues and we all agree that the expenses are generally not deductible.

My book says:

"Individuals can deduct legal fees only if they can meet the production-of-income test, however this is difficult....If the legal fees are more directly tied to present or future employment, the chance of getting the deduction is greater. The IRS allowed a taxpayer to deduct fees incurred in fighting a discharge from his job".

I would have to look into it further (and I'm not sure you guys could afford my billing rates :) - just kidding). I suppose it could be argued that the fees are tied directly to future employment and the production of income.

Bottom line: Ask your lawyer. I'm sure this has been examined before. I work on tax returns for foreign nationals and have never seen a case of someone deducting fees involved in immigration issues, however, it could be that they did not know to include the information. Maybe someone else can shed some light. Sorry I could not come to a definitive conclusion.
 
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