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Tax Return - Expenses Moving From UK

Tax Return - Expenses Moving From UK

Old Feb 6th 2011, 4:10 am
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Question 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
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Old Feb 6th 2011, 4:41 am
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Default 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.
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Old Feb 6th 2011, 6:08 am
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Default Re: Tax Return - Expenses Moving From UK

You should take a look at IRS Publication 521 (2010), Moving Expenses
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Old Feb 6th 2011, 11:25 am
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by Michelmas View Post
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.
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.
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Old Feb 6th 2011, 1:32 pm
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Post 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
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Old Feb 6th 2011, 3:25 pm
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by dunroving View Post
However, when I came back to the UK, I went to H&R Block to complete my final tax return.
There's your first mistake.
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Old Feb 6th 2011, 3:29 pm
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by sir_eccles View Post
There's your first mistake.
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?
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Old Feb 6th 2011, 6:13 pm
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by dunroving View Post
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?
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.
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Old Feb 6th 2011, 8:13 pm
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by HarryTheSpider View Post
My employer took care of an awful lot of the expense of moving, but not all.
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.
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Old Feb 6th 2011, 11:21 pm
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Default 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
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Old Feb 7th 2011, 3:59 pm
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Default Re: Tax Return - Expenses Moving From UK

Originally Posted by Michelmas View Post
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.
Not all relocation expenses can be claimed though...
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