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GC game plyr
03-16-2007, 09:58 PM
As many of us paying the GC expenses also H1b expenses, is there a provision under IRS, that it can be claimed as deduction?

Would appreciate if some one share their opinion

thanks

GCSOON-Ihope
03-16-2007, 10:25 PM
As many of us paying the GC expenses also H1b expenses, is there a provision under IRS, that it can be claimed as deduction?

Would appreciate if some one share their opinion

thanks

There already was quite a heated debate about it some time ago (I am too lazy to find the exact thread) and the answer is: NO.
No immigration related expense is deductible: I personally asked the IRS about it.

ns007
03-16-2007, 10:35 PM
No.

GC is for the future employment filed by your employer. It is not "tied" to you i.e., if you leave your employer in middle of GC process you cannot "carry forward" to next employer. You have to file a new GC with new employer (retain priority date in some cases).

Legally your employer can't even ask you money to pay for the GC process.


As many of us paying the GC expenses also H1b expenses, is there a provision under IRS, that it can be claimed as deduction?

Would appreciate if some one share their opinion

thanks

voldemar
03-16-2007, 10:55 PM
Legally your employer can't even ask you money to pay for the GC process.That was discussed too. There is no such provision in law.

masterji
03-18-2007, 03:57 PM
According to IRS (Publication 529) "You can deduct legal fees
>related to doing or keeping your job". Any comment on that?

a_yaja
03-19-2007, 09:47 AM
According to IRS (Publication 529) "You can deduct legal fees
related to doing or keeping your job". Any comment on that?
I read this one too. So atleast the fees paid for H1B extension Premium Processing must be tax deductable. Anyone see why this can be a problem?

FinalGC
03-19-2007, 12:35 PM
Guys:

Yes you can claim your GC and H1 costs as deductions....based on >>>>IRS (Publication 529) "You can deduct legal fees related to doing or keeping your job".<<<<<<<

yabadaba
03-19-2007, 12:39 PM
just cos u were lucky and fell through the cracks of not being audited does not make it legal.

all cpas have said that u cannot deduct... now if u still want to do it.. go ahead

FinalGC
03-19-2007, 02:13 PM
There is another way to claim the credit.....This only works if you have a % basis of working with your employer.

- Claim a portion of your salary be paid as an expense reimbursement.

Here is the example.
If your salary is $4000/month and you are entitled to get a bonus of $1000/month. Legally a bonus is never guaranteed. However, based on your arrangement with the consulting firm, you can categorize the bonus as an expense reimbursement against the receipts that you can submit to your employer for all the GC and H1 expenses. This way you save of Social Security, Medicare, State and Federal taxes, while if you take deductions in tax return you only save on Federal taxes.

The first catch here is that your salary on your LC and H1 should always reflect $4000/month, rather than $5000/month, since the rates fluctuates for various projects. This way you are covered for lower and higher rates of projects and your paycheck always shows the same amount on the monthly paycheck all through the GC & H1 lifecycle.

The second catch is that the employer needs to be very trustworthy, otherwise he will never pay you for your bonus amount..:-)

I am not a CPA nor a legal attorney, so please use this method at your own risk. This is just a creative suggestion.