[cdacsumit]

Hi,

I am on 2 year deputation to US on H1 visa with my wife and baby in California.
Can I go for itemized deduction claiming deductions on:
1) Apartment rent @1500p.m.
2) Meals @39p.m.

Regards,
Sumit

[MukatA]

You can file joint return as residents and claim deduction for your baby.
Rent and meals are not deductible expenses.
If you came in 2008, you can deduct Moving Expenses. It is deductible even when you do not itemize deductions. Read: Your U.S. Tax Return: Moving Expenses

[cdacsumit]

You can file joint return as residents and claim deduction for your baby.
Rent and meals are not deductible expenses.
If you came in 2008, you can deduct Moving Expenses. It is deductible even when you do not itemize deductions. read: Your U.S. Tax Return: Moving Expenses

Is this correct to say:
If taxpayer is a Non-Immigrant Temporary Worker in United States of America working on H1B visas for the tax year 2008. Like for any other taxpayer, Tax Home is their Principal Place of Employment, for Non-Immigrant Workers (L1/H1) also, their working in the US, mostly at the client locations, therefore satisfies the condition of being away from “Home”.
Such Non-Immigrant Workers (H1B or L1 Visa Holders) who enter the US for a specific
Purpose and for a temporary period depart the US when their maximum period of stay
Has been reached. This means that their nature of assignment, to work at US Locations
Shall be termed as” Temporary”.
As the Taxpayer’s assignment was also away from tax home and purely temporary in
Nature Taxpayer opines that he is eligible to claim any and all of the job related
Expenses that were incurred by him during the tax year 2008 but not reimbursed by his
Employer.
IRS allows deduction on job related expenses, only if these expenses were met on
Account of the temporary nature of job condition; if those expenses were incurred while
The taxpayer was away from his Tax home and only to the extent those expenses were
Unreimbursed by the employer.
The taxpayer satisfied all of these conditions:
(a) His assignment to work at client location was purely temporary. Under no condition,
The working could be deemed a permanent assignment as the contract to work for
Client was signed by the employer but not by the Taxpayer. Taxpayer was always a
Replaceable temporary consultant at the choice of the employer and/or the client
With no specific period of contract directly offered to the taxpayer either by the
Employer or the client at the client site.
(b) The assignment was always away from the Tax Home. By definition, Taxpayer’s Tax
Home was India while during the TY 2008 project was assigned in the state of CA in
The USA during the year at different client locations.
(c) No portion of his Job Related expenses, as claimed in Form 2106 for the Tax Year
2008, was reimbursed by his employer.
To more specifically explain, the Taxpayer incurred certain job related expenses to meet
Accommodation rent, conveyance/transportation, meals and other incidentals.
It is ordinary and necessary for any consulting taxpayer to spend towards lodging, meals
And local transportation expenses while away from Home at a client location if such
Travel involves “overnight” stay.
Also, a taxpayer’s living at a rented apartment, if the job condition demands extended
Stay while away from home in the pursuit of the job, trade or business, and such stay is
Beyond reasonable period for one to stay at a Motel or Hotel, may be construed as
Within the definition of “lodging”. Expenses while away from home.
Actual rental expenses of the Taxpayer, his daily meals and local transportation
(conveyance if own vehicle is used) assumed as per standard allowance rate (Published
By IRS in it publication 1542), while on project, therefore, qualifies as a reasonable and
Ordinary expense in the pursuit of his job condition.

With this support, can apartment rent and meal allowances @39 p.d. can be accounted for deduction?

[IntlTax]

If the assignment is for more than one year, then you cannot claim away from tax home expenses.

[MukatA]

cdacsumit:
Evidently you have done a lot of home work. And IntlTax also agrees with you.

I do not disagree with both of you, but it still does not appeal me. I agree that my knowledge on this is limited.
1. You came on a new permanent job on H1 visa with your family. How is India your tax home?
2. How is a L1 or H1 job a deputation? You are now working for an U.S. employer.

[IntlTax]

I did not agree. cdacsumit said his assignment was for 2 years. Two years is more than one year. If more than one year, the costs are non-deductible.

[cdacsumit]

cdacsumit:
Evidently you have done a lot of home work. And IntlTax also agrees with you.

I do not disagree with both of you, but it still does not appeal me. I agree that my knowledge on this is limited.
1. You came on a new permanent job on H1 visa with your family. How is India your tax home?
2. How is a L1 or H1 job a deputation? You are now working for an U.S. employer.

Hi,

I am an employee of India based company, (like Infosys or TCS) and on a deputation to US. I may be going back to India with in 16 months from my date of entry in US.

Regards,
cdacsumit

[MukatA]

You are not employee of Indian company or India based company.
You are employee of an U.S. company irrespective of what is its relation with Indian company.