Immigration costs

[JoshinNC]

Go figure, a person actually goes through the proper channels to become a citizen of our great country and it actually works!

Now, to the tax aspect. My client married a woman who is going through the naturalization process. Her SS card says "Valid for work only with DHS authorization".
Does this qualify her as a US national for dependency? Also, are the costs incurred in 2006 for immigration fees deductible in any way, especially since the wife is also a bonified employee of my client's business? I would think yes, since he couldn't have hired her if the paperwork wasn't submitted, so this would be a business expense?

Not often that I get someone who actually goes through the process, so this is "foreign" to me.

[ChEAr$]

Go figure, a person actually goes through the proper channels to become a citizen of our great country and it actually works!

Now, to the tax aspect. My client married a woman who is going through the naturalization process. Her SS card says "Valid for work only with DHS authorization".
Does this qualify her as a US national for dependency? Also, are the costs incurred in 2006 for immigration fees deductible in any way, especially since the wife is also a bonified employee of my client's business? I would think yes, since he couldn't have hired her if the paperwork wasn't submitted, so this would be a business expense?

Not often that I get someone who actually goes through the process, so this is "foreign" to me.

I don't think so. To allow such a deduction is tantamount to converting a personal
expense to business. Must ask if it is both ordinary AND necessary.

[Gretel]

I agree with ChEAr in this scenario. T/P could have hired an American worker for the same job.

If a specialized worker is hired because nobody is available for that job in US than it's a different story.

[JoshinNC]

Ok

Now the dependency question. Is she is his dependent (based on residency rules)?

[Chief]

Married as Dependent

I dont think you are asking if he can file married joint. No married filing separate if at any time she was nonresident. In that case if children are involved He can file as Head of Household Howelse would you file with her as dependent? What tests would she meet? .

[GIMoe]

Dependant

Now the dependency question. Is she is his dependent (based on residency rules)?

A spouse can not be a dependant of their own spouse. If she is a legal resident then they can file MFJ or MFS (if they lived together in the last 6 months of the year, neither can file HOH).

If her status is not a legal resident, then he can file a 1040 MFS and she can file a 1040NR MFS. The better option in this scenario would probably be to take the election to treat her as a resident for tax purposes and file a 1040 MFJ return -- especially if there are children in the mix.