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    tuhin's Avatar
    tuhin Posts: 16, Reputation: 1
    New Member
     
    #1

    Feb 8, 2006, 02:28 PM
    itemized deduction for OPT?
    Hi

    Restating few things again that I am a Indian nationality working in client place for a consulting firm, my status was CPT/OPT in 2005 & currently in from Jan 2006 status is H1. I moved from upstate New York -the city where I did my Masters , to Saint Paul, Minnesota - the place I am working ( total distance approx 1000 miles ) expenses paid for moving paid by employer. I did paid $50 from my & I didn't asked for the refund.

    I have estimated the expense(this is minimum what I can calculate) while staying in Saint Paul:
    travel expense = 100(days) * $20 = $2000( for cab) + vehicle expense $1500 = $3500
    meal expense = 180(days) * 10 = $1800. =1800 = 1260

    state tax = $3000

    Gross Income = $50947

    I had paid taxes while buying car, electronics.. whether I can include those taxes... = $2000 or more
    Also can I add any other deduction for itemized?

    standard ded = $5000

    I can't include medical expense of $5000 due to non-residient alien.
    In this scenario whether should I file itemized deduction or standard deuction?

    Thanks in advance

    Tuhin
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 8, 2006, 03:40 PM
    Tuhin:

    Unless you have left family back in NY or maintain an apartment in upstate NY in anticipation of returning there after your St Paul work assignment is complete, you would have a hard time convincing an IRS auditor that your assignment in St Paul is a temporary work assignment.

    Have you rented an apartment in St Paul on an extended (6 months or more) lease? Have you registered a car in Minnesota? Have you moved your furniture to St Paul?

    If the answer to any of these questions is yes, then in fact your move to St Paul will be considered a permanent job location change by the IRS. This means that your daily expenses in St Paul cannot be deducted as employee business expenses.

    Without those daily expenses, your itemized deductions will not exceed the $5,000 standard deduction.

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