Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Some important queries regarding 2007 tax (H1B). (https://www.askmehelpdesk.com/showthread.php?t=184838)

  • Feb 16, 2008, 09:50 PM
    ashnpri
    Some important queries regarding 2007 tax (H1B).
    I have stayed in US on and off from 2004. Here are my stay details :
    2004- 153 days,
    2005 - 283 days,
    2006 - 284 days,
    2007 - 256 days

    My annual gross income is in range of $70K for 2007.

    a. I think I would be resident alien, please confirm?

    b. My parents came over and stayed for couple months in 2007. I believe I can't claim them as dependents, But can I claim the amount
    I spent for their insurance, travel and other expenses as deductions ?

    c. I am paying $600 per month as mortgage back home in India for my flat, can I claim these amounts as deductions ?

    d. I work at a client location in CA (through an Indian vendor). Have stayed at this location for whole of my 2007 stay in US and
    Rest in india (109 days). During my stay in US my employer paid regular salary (W2). Considering this what would be my tax home ?
    Can I claim my food, travel or other per diem expenses ?

    e. my family medical bills ran over $2000 last year, I have paid some and some are pending. Considering my annual income around $70k,
    Can I claim these expenses as deductions ?

    Thanks for your help!:)
    Ash
  • Feb 16, 2008, 10:08 PM
    MukatA
    What was your visa status in 2004, 2005, 2006 and 2007? When did you start working on H1-B? Did you file your 2006 tax return? If yes, which form did you file?

    Only after you give this info, it is possible to tell you more about your filing status?

    You can claim your parents as dependent unless they are residents. You can't deduct expenses for their insurance, travel...

    If you are resident for 2007, then your tax home is the U.S. You can claim expenses related to your job that were not reimbursed by your employer.

    You can deduct job related expenses (over 2% of your AGI) and medical expenses (over 7.5% of your AGI) only if you itemize your deductions. That is if you have even $5000 of medical expenses, you can deduct it.
  • Feb 26, 2008, 01:16 PM
    ashnpri
    2004 it was NR, 2005, 2006 it was resident. I did file taxes for all the years and was on H1B for the whole duration from 2004-till now.

    Now my employer (based out in india) deputed me to a new client location in CA. The duration stated to me was around 6-8 months.
    Total wages reported on W2 are 50,000 for 2007 and after applying standard deductions & dependent deductions it becomes 30k.

    Now with this & information I provided in my earlier post, I have following question:
    a. What is my tax home ?

    b. Since I am working at client location , can I deduct rent, utility charges, food, travel expenses as deductions?

    c. I also paid $600 as tax in my home country, this tax was paid on the indian component of my global salary which was taxed in US. Now if I go with
    Standard deductions (and not itemize) can I still claim this foreign tax as credit? If yes how ?

    d. what is Adjusted gross income, is this something calculated after deducting standard deduction from my W2 salary ?

    Thanks for the help!
    Ash
  • Feb 26, 2008, 01:17 PM
    ashnpri
    Quote:

    Originally Posted by MukatA
    What was your visa status in 2004, 2005, 2006 and 2007? When did you start working on H1-B? Did you file your 2006 tax return? If yes, which form did you file?

    Only after you give this info, it is possible to tell you more about your filing status?

    You can claim your parents as dependent unless they are residents. You can't deduct expenses for their insurance, travel...

    If you are resident for 2007, then your tax home is the U.S. You can claim expenses related to your job that were not reimbursed by your employer.

    You can deduct job related expenses (over 2% of your AGI) and medical expenses (over 7.5% of your AGI) only if you itemize your deductions. That is if you have even $5000 of medical expenses, you can deduct it.

    2004 it was NR, 2005, 2006 it was resident. I did file taxes for all the years and was on H1B for the whole duration from 2004-till now.

    Now my employer (based out in india) deputed me to a new client location in CA. The duration stated to me was around 6-8 months.
    Total wages reported on W2 are 50,000 for 2007 and after applying standard deductions & dependent deductions it becomes 30k.

    Now with this & information I provided earlier, I have following question:
    a. What is my tax home ?

    b. Since I am working at client location , can I deduct rent, utility charges, food, travel expenses as deductions?

    c. I also paid $600 as tax in my home country, this tax was paid on the indian component of my global salary which was taxed in US. Now if I go with
    Standard deductions (and not itemize) can I still claim this foreign tax as credit? If yes how ?

    d. what is Adjusted gross income, is this something calculated after deducting standard deduction from my W2 salary ?

    Thanks for the help!
    Ash

  • All times are GMT -7. The time now is 12:18 AM.