[tuhin]

Hi

I am a Indian working in client place for a consulting firm, my status was CPT/OPT in 2005 & currently in from Jan 2006 status is H1. In this scenario to file form 2106, I don't have documents to prove the expenses(transportation , meals etc).;
I have estimated the expense(this is minimum what I can calculate):
travel expense = 100(days) * $20 = $2000( for cab) + vehicle expense $1500 = $3500 * .50 = 1750
meal expense = 180(days) * 10 = $1800. =1800 * .7 = 1260
business exp = 3010 -1018(2% of gross income)= 1992.

state tax = $3000

I had paid taxes while buying car, electronics.. whether I can include those taxes... = $2000 or more

If I inlcude above tax then itemized ded = $1992+ $3000 +$2000 = $6992. Also can I add any other deduction?

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?


Thanks in advance

Tuhin

[AtlantaTaxExpert]

Tuhin:

You can use the federal per diem rates that are available on the IRS website (www.irs.gov). As long as you can reasonably prove that you were traveling, you need no receipts if you claim the daily per diem rate as quoted by the IRS.

However, if you were traveling as an employee (pay documented with a W-2), you have two requirements. The first one you seem to know about: the fact that you have to itemize.

However, you also have the 2% floor to meet. This means that based on 2% of your Adjusted Gross Income, you can deduct the travel expenses that exceed 2% of your AGI.

Since you did not provide what you got paid for the year of 2005, I cannot advise you as to whether you qualify to itemize or not.

Also, to check out the per diem rates, you need to say to where you traveled.