Dear Tax Expert,

My sister, Indian citizen worked for WMC direct (Burbank) from Aug 12th 2005 to June 12th 2006 with an L1 visa. According to publication 519, pg 28, Chapter 5, if a temporary assignment lasts less than 1 year, ordinary and necessary travel expenses as well as lodging(rent paid and utilities) can be deducted.

1. Is this applicable for an L1 visa with a job lasting less than 1 year? She rented an apt in Burbank and was paid a salary by GenPact, CT, USA.

2. For part of the time, the apt was rented under her room-mate's name. Would that be a problem or can we get around that showing the bills were coming there and hence she was a resident of that apt.

3. I have heard, since she is out of the country, she has a later deadline to file her taxes. Is this correct? How much extra time does she get? She definitely does not owe taxes. In fact, even w/o travel expense deductions, she will get back money.

I look forward to your expert advice.

Thank You,

Sincerely,

Eva

1) Yes, she can claim those expenses if she received no offsetting reimbursements from her employer. If she DID get reimbursed, but the reimbursements were then added to her taxable salary, she can still claim them.

2) She may need to prove her payment. Of course, if she claims the daily per diem rate, then she need prove NOTHING.

3) The later filing date is irrelevant if she owes no taxes. She should file as soon as possible in order to get her refund back, but the only REAL deadline for her is 16 April 2010. If she files after that date, she loses her rights to the refund.