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    Kumar1111's Avatar
    Kumar1111 Posts: 40, Reputation: 0
    Junior Member
    		  
    #1

    Apr 5, 2009, 05:38 PM
    Should W 12a code L amount be deducted from income on 1040NR
    Hi,

    I have a question about a case of deduction from income in form 1040 NR.

    There is some amount shown in W2 in cell 12a with code L. This is business expenses reirmbursed. The tax return form is 1040NR for a F1 visa holder. The question is

    How this amount (with code L) should be dealt with in form 1040NR. Should this be deducted from the wages somewhere? If yes in which line this should be shown?

    Can I assume this amount included in wages reported in W2(cell 1)?

    Thank you in advance
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jun 4, 2009, 10:06 AM
    The "L" code denotes taxable income that is reimbursement for business expenses. This means you can deduct those expenses on Form 2106 and show them as itemized deduction on the Schedule A of the Form 1040NR package.
    Kumar1111's Avatar
    Kumar1111 Posts: 40, Reputation: 0
    Junior Member
    		  
    #3

    Jun 23, 2009, 11:36 AM
    Thank you. But I am kind of still confused. I understand that the expense can be deducted. My question is

    Does the income shown on box 1 of W2 includes this amount as well or Not?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 23, 2009, 11:46 AM
    Yes, the income under the "L" code SHOULD be included as part of your wages as shown in box 1 of the W-2.
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