[hodyssey2006]

In 2007 my employer sponsored me for an H1B visa. We made an agreement that I would pay all of the lawyer fees for filing the H1B visa with the immigration office. Am I able to deduct the legal fees I paid? Where do I enter the deduction? On Schedule A Employee Business Expenses Line 7 'Other' or Schedule A Miscellaneous Expenses Line 17 'Certain attorney and accounting fees'?

Thanks in advance for your help.

[Pompanomom]

I don't believe that you are allowed to pay any of the fees associated with obtaining your H1B other than the expediting fee (if you chose to expedite the process).

[MukatA]

These expenses are personal, and are not deductible.

[AtlantaTaxExpert]

Agreed!

[arr164]

I'm wondering: what is the basis of the answers from MukatA and AtlantaTaxExpert? If the visa fees (both government and legal) were paid by the employer, he can deduct it as business expense. It would be illogical if IRS demands that employer absorbs the costs as his PERSONAL expense! Then do how the expenses become personal once it gets to employee? The definition is "common and necessary" which is very vague and subjective!
Somebody else is saying on this site that only legal fees are deductible? I don't see any sense in that answer either.
Is there any way to get an official ruling from IRS?

[arr164]

Continuing the previous posting:
See this page that "AtlantaTaxExpert" thought the expenses are deductible!!
https://www.askmehelpdesk.com/taxes/...on-176828.html

Also see this page (another contradiction):
https://www.askmehelpdesk.com/taxes/...ax-183532.html

[AtlantaTaxExpert]

At the time of the posting, I DID in fact think the H-1B visa costs were deductible.

However, interaction with the IRS revealed the error of my thinking.

I cannot provide precise rulings, but the IRS was crystal clear when we discussed the matter: ALL costs associated with visas (any type) and green cards applications are PERSONAL in nature and therefore CANNOT be deducted.

Note that such costs are an AUDIT FLAG for the IRS. They look for them on non-resident returns and U.S. returns based on the presence of ITINs.

[arr164]

How about employer? If employer pays all the expenses, as is legally required for some portions anyway, can he deduct them as business expenses?

[AtlantaTaxExpert]

Probably. He can if the business is a sole proprietorship or partnership. Not sure about how the corporate tax laws apply.