Pipmeister

First of all I wish I had found this site months ago - would have quickly answered a few other questions that were a nightmare to get resolved...anyhoo...

Ok.. So I am here on an H1B visa (open for 3 years) but I will be marrying my US Fiance next year (which is another tax question for later).

The problem I currently face is this: my new employer is a small consultancy business that doesn't provide it's employees with the necessary IT and phone equipment. Instead they pay you $175 per month (which I am told is taxed) to cover the cost of you having a mobile phone, voice plan with a high number of minutes, unlimited data plan, 3G data card and the purchase of a certain brand of laptop (with whom they get a discount) - however the laptop needs to be a certain high spec due to the type of work we do. This could either be leased or purchased (but the leasing deal might not work as I will have a zero credit rating despite having a 999 rating on UK Experian).

Prior to joining the company I thought that $175 per month should just barely cover this and I didn't want to have to pay any of my own money as these items would be for business use only. But as it will be taxed I am looking at having to suppliment with my own money for carrying out my employer's business - a bit like using your own car for business use.

Now, had this been the case in the UK I could have claimed back and difference in expenses or through the P11d form etc. But in the US I am not so sure.

Does any know if this is something I can claim as a business expense and therefore deduct it either from my tax or income total for the year? And would that only apply if I were to be leasing the laptop as oppoed to purchasing outright (as there might be a capitalization requirement .. in the UK you could charge 50% in the first year then a reducing 25% each year thereafter).

Any help would be greatly appreciated....

Pip

Bob

You can claim expenses, just a bit of hassle as you can't then fill in the EZ form of the tax return...either way, there's quite a few threads on tax issues to search out for, though you won't have to worry about it till next year, well April-ish

Bluegrass Lass

I'm not 100% sure, as the OP's question is in regards to a business expenses, but I would think that all of his work deductions would need to be higher than his standard deduction. Otherwise, it's not worth the hassle of itemizing the deductions, and he could still fill out the simpler EZ form.

jayne9586

Yes you can claim it. Your employer should give you a 1099 form for the $175 a month so you will have to fill out a schedule c and claim expenses on that.