J1 Sponsor Fees - Tax Deductible?

[ScotsinAZ 0]

Afternoon All,

My wife is in the process of applying for a J-1 teacher visa to come across in the summer. The sponsor organization fees, initially quoted at $1,000 a year, have crept up and up over the course of the process and are now $6,000 per year. It would help no end if these were tax deductible and I'm hoping that they relate directly to "the production of income" test as the ability to work is directly linked to the sponsorship. I see that legal fees associated are not tax deductible but obviously not sure where the relationship starts and stops to production of income. We are on the verge now of having to pick a sponsor organisation.

We also see that a lot of moving expenses are tax deductive via publication 521 so that road definitely looks promising. Any help of advice on this specific matter would be superb. Just about to get waded into the other parts of this forum and the site. Wish I had found it months ago!

Thanks in advance for any guidance / suggestions.

Edited March 25, 2016 by ScotsinAZ

[Nich-Nick 3,354]

Afternoon All,

My wife is in the process of applying for a J-1 teacher visa to come across in the summer. The sponsor organization fees, initially quoted at $1,000 a year, have crept up and up over the course of the process and are now $6,000 per year. It would help no end if these were tax deductible and I'm hoping that they relate directly to "the production of income" test as the ability to work is directly linked to the sponsorship. I see that legal fees associated are not tax deductible but obviously not sure where the relationship starts and stops to production of income. We are on the verge now of having to pick a sponsor organisation.

We also see that a lot of moving expenses are tax deductive via publication 521 so that road definitely looks promising. Any help of advice on this specific matter would be superb. Just about to get waded into the other parts of this forum and the site. Wish I had found it months ago!

Thanks in advance for any guidance / suggestions.

Moving expenses are generally to keep your current job (in the U.S.) because you were forced to move and not reimbursed by your employer. It isn't because you chose to find a new job.

Off topic of your question, but why not apply for a spouse visa for her? Are you a U.S. citizen? The J1 seems expensive for a summer visit.

[Anh map 2,098]

You should discuss the tax ramifications with a CPA, not an immigration forum.

[ScotsinAZ 0]

Moving expenses are generally to keep your current job (in the U.S.) because you were forced to move and not reimbursed by your employer. It isn't because you chose to find a new job.

Off topic of your question, but why not apply for a spouse visa for her? Are you a U.S. citizen? The J1 seems expensive for a summer visit.

Hi Mate,

Sorry, my initial post wasn't clear. We are going across on a J-1 Teacher visa for 3 years. We are both UK citizens so I'll go across on a J-2. The IRS guidance documentation may well be overly vague if it is intended for that single purpose. Will see what I can find out when in Phoenix in the next fortnight and will report back to my own question. Cheers.

You should discuss the tax ramifications with a CPA, not an immigration forum.

Many thanks. We are obviously planning to do this but thought that others who have gone through the process may have had some insight or experience. Cheers

[Nich-Nick 3,354]

There are so many exceptions to IRS rules that your own research will likely prove more fruitful. You get some crazy answers in these forums....often contradictory.

[ScotsinAZ 0]

There are so many exceptions to IRS rules that your own research will likely prove more fruitful. You get some crazy answers in these forums....often contradictory.

God love the internet! We have an appointment with a local CPA on the 4th of April so we'll see where we stand there. It may be of some use to someone down the line so I'll post our findings here. Appreciated.

[ScotsinAZ 0]

Morning,

As contradictory as the internet forums can be, it turns out CPAs are much the same. We have taken advice from 3 CPAs. 2 believe the sponsorship fee is categorically not a deductible expense whilst the other has had success in categorising it as deductible as long as it is directly linked (taken off the salary payment at source by the employer on a monthly basis). We will proceed with that road and that CPA in the hope that they are right but we're prepared for it not to be tax deductible.

Apologies for not finding a firm answer but I will update once we have run through the process in the hope that it helps someone else down the line.

[aaron2020 11,651]

As a tax professional, the J-1 expenses are not tax deductible. Those are personal expenses.

Go with the lone wolf at your peril. You'll pay for the audit, not him or her.

Edited April 13, 2016 by aaron2020

[ScotsinAZ 0]

As a tax professional, the J-1 expenses are not tax deductible. Those are personal expenses.

Go with the lone wolf at your peril. You'll pay for the audit, not him or her.

Thanks for the reply Aaron. I will do a bit more digging before deciding on a CPA then! Appreciate the information.