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-   -   Tax claim for moving to the US (https://britishexpats.com/forum/usa-57/tax-claim-moving-us-584847/)

Dogbyte Jan 18th 2009 7:08 pm

Re: Tax claim for moving to the US
 

Originally Posted by Patrick Hasler (Post 7184179)
You don't need anyone but yourself !

When I came here I called my tax office back in the UK, they mailed me a form, I filled it in and returned it, got a refund from the UK within a month :rofl:

No fee's ... no legal rip off, no tax accountant charges :rofl:

I understand that Pat, and your reply was appreciated, however,my situation is that I continue to pay my taxes on my monthly pension, at source, back in the UK.(there are simple reasons for not claiming back the taxes,you mentioned.) This is, I believe acceptable to the US IRS, as they have the reciprocal tax arrangement with the UK and as it is nowhere near the figure quoted, its not assessed as declarable income?. I draw money from my UK bank a/c if and when I need it(every month) to pay a couple of bills.I have no income from the US. That is down to the wife's employment.
So to re-mention, does anyone know if I can claim back for any item which we have had to pay for here in the USA since we arrived, in connection with our move across.

dbj1000 Jan 18th 2009 7:46 pm

Re: Tax claim for moving to the US
 

Originally Posted by Dogbyte (Post 7184626)
I understand that Pat, and your reply was appreciated, however,my situation is that I continue to pay my taxes on my monthly pension, at source, back in the UK.(there are simple reasons for not claiming back the taxes,you mentioned.) This is, I believe acceptable to the US IRS, as they have the reciprocal tax arrangement with the UK and as it is nowhere near the figure quoted, its not assessed as declarable income?. I draw money from my UK bank a/c if and when I need it(every month) to pay a couple of bills.I have no income from the US. That is down to the wife's employment.
So to re-mention, does anyone know if I can claim back for any item which we have had to pay for here in the USA since we arrived, in connection with our move across.

So, your relocation expenses consisted of your airfares over here, and then the cost of setting up your life here (furniture, consumer durables etc.)?

You're not working, but your wife is? I would think that she can claim your relocation expenses in the same way as has already been mentioned in this thread.

In particular, the IRS instructions on deducting moving expenses clarify (which I didn't know) that you don't have to have arranged a job before you move, so long as you start work within a year of moving. If that applies to your wife then you can at least deduct your airfares (but not lodging or meals). Glancing through the IRS Publication 521 I can't see anything else that might apply to you, but perhaps you can find something?

Note that although most of the publication refers to moves within the US or from the US to a foreign location, there is a line that clarifies that you can claim for moves from a foreign location to the US:
If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. Your move may be from one U.S. location to another or from a foreign country to the United States.

Dogbyte Jan 19th 2009 12:33 am

Re: Tax claim for moving to the US
 

Originally Posted by dbj1000 (Post 7184756)
So, your relocation expenses consisted of your airfares over here, and then the cost of setting up your life here (furniture, consumer durables etc.)?

You're not working, but your wife is? I would think that she can claim your relocation expenses in the same way as has already been mentioned in this thread.

In particular, the IRS instructions on deducting moving expenses clarify (which I didn't know) that you don't have to have arranged a job before you move, so long as you start work within a year of moving. If that applies to your wife then you can at least deduct your airfares (but not lodging or meals). Glancing through the IRS Publication 521 I can't see anything else that might apply to you, but perhaps you can find something?

Note that although most of the publication refers to moves within the US or from the US to a foreign location, there is a line that clarifies that you can claim for moves from a foreign location to the US:
If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. Your move may be from one U.S. location to another or from a foreign country to the United States.

Thanks for all that dbj,your correct in your first two lines (I'm a kept man ) lol.
I am surprised that this suibject in this area hasn't been discussed before in an in depth manner, so once I see how the visit to a professional goes in the near future, I'll report back. Thanks everyone.

ITsWhatIDo Jan 19th 2009 11:51 am

Re: Tax claim for moving to the US
 
Is it true to say that due to relocation, you can pay almost no taxes for the first couple of years? Or does that only aply to certians visas? I was told this by someone who went over on a H1-B, whereas I'm lookig to go over on an L1-A.

notacrime Jan 19th 2009 12:05 pm

Re: Tax claim for moving to the US
 

Originally Posted by ITsWhatIDo (Post 7186962)
Is it true to say that due to relocation, you can pay almost no taxes for the first couple of years? Or does that only aply to certians visas? I was told this by someone who went over on a H1-B, whereas I'm lookig to go over on an L1-A.

Sounds like they were blowing smoke up your a**.

Say you moved to the US next month, and you spend $20k doing so. You will be able to decrease the amount of income that the government considers 'taxable' by $20k (actually less than $20k since not all moving related expenses are deductible.) So unless you make only $30k or so you are still going to have to pay some taxes in the first year.

It's quite a bit more complicated than I just stated, but that's the gist of it.

The visa that you will be on doesn't make any difference.

Bob Jan 19th 2009 11:15 pm

Re: Tax claim for moving to the US
 

Originally Posted by notacrime (Post 7186997)

The visa that you will be on doesn't make any difference.

Actually it does, if you come on a J1, you can forego paying some of the taxes like medicare if you do head back at the end of your visa, but if you decide to stay, you'll have to back pay it. The H1 is the same for some of these taxes.


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