are expenses to become a u.s. citizen tax deductible?
Whether you are a senior citizen or a caregiver for one, tax season means accounting for the past year's medical expenses. Both individuals and people who care for qualifying relatives can claim tax deductions and credits for out-of-pocket medical expenses. These costs can include a range of expenditures such as: 1  Dental treatments. You are a U.S. citizen, have a tax home in Brazil, and meet the physical presence test. You are self-employed and both capital and personal services combine to produce business income. Your gross income was $146,000, business expenses were $172,000, and your net loss was $26,000. You are a U.S. citizen, have a tax home in Spain, and meet the physical presence test. You are self-employed and personal services produce the business income. Your gross income was $118,531, business expenses $67,695, and net income (profit) $50,836. The 7.5% rule says you can only deduct medical expenses-for both yourself and your loved ones-if these costs exceed 7.5% of your adjusted gross income. To qualify for a dependency deduction, you must pay for more than 50% of your qualifying relative's support costs. Answer: John-The costs associated with becoming a US Citizen or Resident Alien or applying for authorization to work in this country are not deductible for US tax purposes. These forms and fees are required by US Citizenship and Immigration Services (USCIS) not Internal Revenue Service. If you exclude foreign earned income or housing amounts, how you show your deductions on your tax return and how you figure the amount allocable to your excluded income depends on whether the expenses are used in figuring adjusted gross income (Form 1040, line 38) or are itemized deductions. You can deduct the cost of tax preparation including purchasing a software program and tax publications. If you paid a fee to e-file your return that is also deductible on Schedule A (Form 1040) as a miscellaneous itemized deduction. You choose the foreign earned income exclusion and exclude $99,200 of your gross income. Since your excluded income is 83.69% of your total income, 83.69% of your business expenses are not deductible. Report your total income and expenses on Schedule C (Form 1040). Caregiver IRS Tax Rules. To qualify for caregiver tax deductions and credits, the person you are caring for must be a spouse, dependent, or qualifying relative, as well as a United States citizen or resident of the U.S., Canada, or Mexico. These expenses are deductible only as miscellaneous deductions on Schedule A (Form 1040). You also have $500 of miscellaneous expenses that are not related to your foreign income that you enter on line 23 of Schedule A.
Yes