Tax Return - Expenses Moving From UK
 

Another tax question.

We moved from the UK to Phoenix, AZ in early Nov 2010.

My employer took care of an awful lot of the expense of moving, but not all.

We were in furnished accommodation a little longer than expected, and had to pay the lions share of this - about $5K.

We also incurred about $850 in extra shipping costs due to not having a permanent place to move in to...

What, if any, of these amounts can we claim against tax?

I know it may result in an academic exercise if itemized deductions come in under the standard ones, but at least we'd all know!

Cheers

Harry The Spider

Re: Tax Return - Expenses Moving From UK
 

Not a tax professional, so take it for what it's worth, but I would claim it all, including any airfare you paid. Claim it under expense required to take up a job more than 50 miles from your old one (or something like that). It's what I did when I moved over.

Re: Tax Return - Expenses Moving From UK
 

You should take a look at IRS Publication 521 (2010), Moving Expenses

Re: Tax Return - Expenses Moving From UK
 

I did too, and TurboTax didn't indicate anywhere that this did NOT include international moves. However, when I came back to the UK, I went to H&R Block to complete my final tax return (for the year I came back - I was visiting NC and so took the opportunity to do my tax return while there). I listed my relocation expenses again, but he said I could NOT claim expenses for an overseas move - whether there is a difference between moving to and moving from the US (or whether he was just blowing smoke), I don't know.

Re: Tax Return - Expenses Moving From UK
 

Thanks for the info & links.

From what I can determine (this is not tax advice!!), you can claim for certain expenses if moving to the US from a foreign country.

You can claim travel and related fees that apply directly to moving possessions and family members - take a detour on the way to your new home, and you can not claim for costs of the detour etc. - I think you'll get the picture.

To my specific question - you cannot claim temporary lodging, only a day at the start for when you had a house but nothing in it because it had been packed & shipped.

It seems we can claim for the $850 additional shipping charges as these related to the specific costs of storage and related fees for our container coming in from overseas.

Well, claiming for the $850 is better than a poke in the eye with a pointed stick, even if the stick was properly sanitised before hand!

Thanks again,

Harry

Re: Tax Return - Expenses Moving From UK
 

There's your first mistake.

Re: Tax Return - Expenses Moving From UK
 

Well, yes, I have read enough about H&RB to realise they aren't the sharpest bunch of people, but this was something that he seemed pretty sure of.

Also, he was the head honcho, not one of the staff they bring in and give a bit of training to before unleashing them on the unsuspecting world.

I think I ended up submitting electronically via TurboTax and did include my shipping costs back to the UK (about $7,000 if I recall). No questions were asked, but I don't know what proportion actually get scrutinized - what is the statute of limitations for an IRS audit? ;)

Re: Tax Return - Expenses Moving From UK
 

I used H&R for my first ever tax return (have done all my own returns since then) and they advised me to specifically include my international travel costs related to moving for my job. I have since become enlightened and stay away from them.

Re: Tax Return - Expenses Moving From UK
 

Be aware that these employer-paid expenses should show up as income on the W2 you get from them. To the extent that these expenses are tax-deductible, it'll end up a wash as far as tax goes. But for employer-paid expenses that aren't deductible, if any, you'll have a tax liability - unless your employer is picking up that tax as part of the relocation package.

Re: Tax Return - Expenses Moving From UK
 

Thanks - the relevant costs were counted as income and my employer grossed everything up, so I'd not actually be paying the tax.

Cheers

HTS

Re: Tax Return - Expenses Moving From UK
 

Not all relocation expenses can be claimed though...