Tax Returns

Old Jan 2nd 2013, 9:25 pm
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Default Tax Returns

Hi,

I am preparing to file my first US Tax Return for 2012 and trying to get my ducks in a row sooner rather than later. My question is based around my relocation. I relocated to the US in July 2012 from the UK. I paid and bought my ticket to move here in the UK with British Airways. Can I claim this as a moving expense even though it was paid in the UK?

Thanks
Natalie
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Old Jan 2nd 2013, 9:47 pm
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Default Re: Tax Returns

Originally Posted by newtohouston View Post
Hi,

I am preparing to file my first US Tax Return for 2012 and trying to get my ducks in a row sooner rather than later. My question is based around my relocation. I relocated to the US in July 2012 from the UK. I paid and bought my ticket to move here in the UK with British Airways. Can I claim this as a moving expense even though it was paid in the UK?

Thanks
Natalie
Where the ticket was paid from is irrelevant. What matters is whether you satisfy the two prongs of the moving expense deduction. But before that you need to figure out whether you are a US resident for tax purposes or not for 2012.
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Old Jan 2nd 2013, 9:59 pm
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Default Re: Tax Returns

That's interesting - I moved in April; my wife in May. I think that means we were resident for tax purposes.

But "To pass the time test, you must work full-time for at least 39 weeks during the first 12 months" - obviously it's not a full 12 months yet, and not quite 39 weeks either. So how do you pass the time test in this financial year - or does it have to be deferred to next year?

My wife was in another country and I had to fly there to pick her, the kids, and all the luggage up. Can I deduct that somewhere?

(Sorry to OP - hope it's not too much of a thread hijack!)
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Old Jan 2nd 2013, 10:00 pm
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Default Re: Tax Returns

thanks for your response - how do I establish that though?
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Old Jan 2nd 2013, 10:25 pm
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Default Re: Tax Returns

By using a competent tax professional. You can review the various relevant IRS documents, but they are not for the faint of heart and as a first timer you'd best be guided by a tax professional.

US immigration is a 'piece of cake' in comparison to US taxation.

Regards, JEff


Originally Posted by newtohouston View Post
how do I establish that though?
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Old Jan 4th 2013, 5:36 am
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Default Re: Tax Returns

If you need an accountant that is well versed in UK and US taxes I recommend Pete Newton. www.britishexpatstax.com
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Old Jan 4th 2013, 6:47 pm
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Default Re: Tax Returns

You'll probably want to start with IRS Publication 519 and go from there. Chances are you'll want to do a dual status filing for the first year, but that depends on where your income is from etc.

Publication 521 talks about moving expenses - at a first glance it would suggest you could deduct the plane ticket, but I don't know how that works with a dual-status filing. Talking to a professional might not be a bad idea but can get expensive. Thankfully that's tax deductible next year.
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