Tax Deduction ( legal expenses ) ???

T

tibz

Registered Users (C)
Hello All!

This thread is not directly linked to tracking I-485 status. So I apologize in advance if I am offending somebody. But I think some people on this board may be interested in this conversation (especially during the tax season)...

Are the legal fees for EAD or GC (if paid by the individual) tax deductible? I read a clause (in the tax software that I am using - 'TaxCut' ) that 'Legal Expenses' may qualify as deductible if they are related either to doing your job or keeping your job.

Any comments ? Does anybody know if its true ???

Again I apologize if I have offended anybody by initiating this thread on this board...

c ya!
 
Good question guys. Don't know if I am right or wrong, but I have been deducting the fees that I have been paying to the attorneys for the GC processing the last 3 years under the context that it is needed to "keep my job". I may be totally wrong but I have gotten away with it with the IRS.

But you need to keep in mind that it goes under the "miscellaneous" deductible which kicks in only if it exceeds 2% of your AGI. Anything more than 2% of your AGI will actually count towards your deductible and reduce your taxable income.

Maybe some other experts can post their comments.
 
I called the IRS to find out and after an hour of wait and a bunch of
questions, they say that they are not deductible. She asked me check
publication 17 (pages 209-212)


Hope this help

Pip
 
Check out with ur Accountant or call to some wellknown tax-e-fillers.



I believe the tax deduction amount varries in cases)... Why!!!! here is something interesting, (I am not talking about fees tax ded

if u gives somthing donataions like ur old car.. and it is tax-ded but ur current income (i.e avg normal salaray) Govt is giving u already 4.5k tax ded. that includes blah blah.... and its up to u want to ask $200+++ for tax ded or .....4.5k.....

Interesting!!..... or confused!!..... hey I am not accountant.. just simple IT person... hehehee

check ur accountant ..... they know better how to save ur money.... instead of using some software.... u gave them $25 ... and see how can they save ur $$$




P.O.J
 
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Hi,

I kept my gc expenses last year ( 2002 expenses) in my tax returns got the refunds.

My tax consultant mentioned to me if it more than 2% you can include this in your tax returns.
 
Originally posted by gclifetime
Hi,

I kept my gc expenses last year ( 2002 expenses) in my tax returns got the refunds.

My tax consultant mentioned to me if it more than 2% you can include this in your tax returns.
Click to expand...

Can you tell whether you took a standard deduction or itemized? Under what head he has taken.

In fact i had question of my own. Can take my H1 transfer fee in moving expenses? I moved to to Houston TX for new job and new company. Company paid for H1 But I paid premium processing fees. Can I take this $1000 in my my moving expense?
 
I happened to work closely with tax professionals. As per them, Deduction of GC expenses may be illegal.

There is a column for "legal fee/license fee deductions" in Schedule C form. But those deductions are for business expenses. Also if the individual is working on "W2" he/she can not claim such expenses.

Only the tax payer working on "1099" may be able to show those deduction. But GC expenses are not related to the business. But if you spend any amount for real fee for set up of the company or corp. OR expenses are for renewal of license etc, they can deduct.

As long as IRS doesn't audit, you are just fine and can deduct any thing. Once, they audit, there may be a problem. Just be aware of the possible consequences.
 
tammy2
Moving expenses are tax deductible. But H1 fee, cannot be deducted. Legally, H1 fee (what ever it costs) should be on employers. If H1 expenses are claimed, employer may be prosecuted. Just avoid that.

Moving expenses, you can claim all related expenses such as
Milage ($0.13c per mile) OR actual expenses like gas exps, maintenance such as oil change etc.
You can claim Hotel expenses (No meal expenses)
Storage expenses
Flight expenses
Transportation of things
Amount paid to Movers

These are per Pub17
 
Originally posted by vmchandra
tammy2
Moving expenses are tax deductible. But H1 fee, cannot be deducted. Legally, H1 fee (what ever it costs) should be on employers. If H1 expenses are claimed, employer may be prosecuted. Just avoid that.

Moving expenses, you can claim all related expenses such as
Milage ($0.13c per mile) OR actual expenses like gas exps, maintenance such as oil change etc.
You can claim Hotel expenses (No meal expenses)
Storage expenses
Flight expenses
Transportation of things
Amount paid to Movers

These are per Pub17
Click to expand...
Just for you info it is nowhere mentioned that employer has to pay for H1. Employer only needs pay $1000 surcharge.
Employer paid my H1 fee, but what I am asking is about Premium processing fees, which I paid. It will not be part of moving expenses but how about job related expenses?
 
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Technically, what ever the H1 related expense would go to employer (that includes all legal and surcharge etc.). Nowhere we can show in moving expenses category. Job related or Job search category, probably you can show but I am not sure.

Also, if you pay any thing like that and want to show in tax returns, you need to save all receipts (for a period of 7 years at least). In case if IRS audits you due to any reason, you may have to present all the evidence to support your claim.
 
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