Liljeberg v. Commissioner, No. 17-1204 (D.C. Cir. 2018)Annotate this Case
The DC Circuit affirmed the tax court's denial of a deduction on income earned by three foreign nationals who participated in the State Department's Summer Work Travel Program in 2012. The court held that appellants did not incur the travel and living expenses at issue in the pursuit of a trade or business, and therefore they may not deduct those expenses under 26 U.S.C. 162(a)(2). In this case, appellants' expenses were personal choices where they voluntarily chose to participate in the Summer Work Travel Program. The court noted that, allowing foreign students who travel to the United States on a "J visa" for temporary employment to deduct their travel expenses when students who are U.S. citizens traveling within the United States to seek temporary employment cannot, would be a peculiar and irrational result.