US tax return for first year.. can anyone help?
#1
Forum Regular
Thread Starter
Joined: Jan 2011
Posts: 174
US tax return for first year.. can anyone help?
Hi
As it is our first year and we have had a lot of relocating costs, I want to know what we can "claim back" as my husband got given a reloc package but 40% got taken out because of taxes. We were told we can get some money back on those 40% if we buy certains things to go with relocation, so im looking for a list of some sort and any other information.. ie: website/books etc.. that can help me to do our first tax return as I know it will be coming soon..
I tried to look in previous thread but unsuccessfully so if someone can provide me with a link it would be great!
thank you very much
Laety
As it is our first year and we have had a lot of relocating costs, I want to know what we can "claim back" as my husband got given a reloc package but 40% got taken out because of taxes. We were told we can get some money back on those 40% if we buy certains things to go with relocation, so im looking for a list of some sort and any other information.. ie: website/books etc.. that can help me to do our first tax return as I know it will be coming soon..
I tried to look in previous thread but unsuccessfully so if someone can provide me with a link it would be great!
thank you very much
Laety
#2
Re: US tax return for first year.. can anyone help?
irs.gov
It'll be on there....but to get the best out of this, especially being the first year, get an accountant to do it, it'll be worth the cost, and not some rubbish HR Block type either, but a proper one.
Certain travel costs can be taken, certain purchases can be taken, but others can't...it's a bit of a major hassle.
Bit late now, but didn't you ask for first/last years tax preparation as part of the relocation package?
It'll be on there....but to get the best out of this, especially being the first year, get an accountant to do it, it'll be worth the cost, and not some rubbish HR Block type either, but a proper one.
Certain travel costs can be taken, certain purchases can be taken, but others can't...it's a bit of a major hassle.
Bit late now, but didn't you ask for first/last years tax preparation as part of the relocation package?
#3
Forum Regular
Thread Starter
Joined: Jan 2011
Posts: 174
Re: US tax return for first year.. can anyone help?
#4
Re: US tax return for first year.. can anyone help?
Unusually for a government bureaucracy, the IRS website is really good for finding tax guides and easy-to-understand information. Here's the section on relocation expenses:
http://www.irs.gov/publications/p521/index.html
Give it a read, and I'm sure we can provide feedback if you have specific questions.
http://www.irs.gov/publications/p521/index.html
Give it a read, and I'm sure we can provide feedback if you have specific questions.
#5
Re: US tax return for first year.. can anyone help?
I'd expect $500-$1000 for a first year return, but the problem is finding a tax accountant who actually has ANY experience of preparing expat taxes. I had a horrible experience with the "professional" section of H&R Block in my first year, and ended up paying them nothing because they screwed it up so badly, but if I had paid for their hours, it would have cost me ~$1500 back in 2003.
#6
Forum Regular
Thread Starter
Joined: Jan 2011
Posts: 174
Re: US tax return for first year.. can anyone help?
oh dear... ill have a read through the website first and see whats the deal..
thank you
thank you
#7
Re: US tax return for first year.. can anyone help?
I highly recommend Pete Newton. He's an expat on this forum and he does our taxes.He knows both the US and UK side of things. He also helped us with our UK tax returns www.doug-tax.com He's reasonable as well.
#8
Re: US tax return for first year.. can anyone help?
It seems like you should be able to deduct almost anything that has to do with moving except for meals.
http://www.irs.gov/taxtopics/tc455.html
However there appears to be a "time test" so you possibly may have to file without the deductions and then amend the return when you meet the "time test". Fortunately since you arrived late in the year, you will likely be filing as a "Non Resident Alien" so you will likely get much of the taxes back even without the deductions.
http://www.irs.gov/taxtopics/tc455.html
However there appears to be a "time test" so you possibly may have to file without the deductions and then amend the return when you meet the "time test". Fortunately since you arrived late in the year, you will likely be filing as a "Non Resident Alien" so you will likely get much of the taxes back even without the deductions.
Last edited by Michael; Oct 21st 2011 at 4:47 am.
#9
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: US tax return for first year.. can anyone help?
And to the OP, it's really worth shelling out some $$ for the first year's tax advice.
#10
Forum Regular
Thread Starter
Joined: Jan 2011
Posts: 174
Re: US tax return for first year.. can anyone help?
Needless to say I will contact this Pete guy and get some advice anyway. If it looks like we wont get back much then I will try to avoid a large bill.. if possible.. its end of december that we have to do the return right?
#11
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: US tax return for first year.. can anyone help?
You'll have to file by April 15th 2012.
#12
Forum Regular
Joined: Apr 2009
Location: West of philly - not quite Lancaster
Posts: 113
Re: US tax return for first year.. can anyone help?
I third getting professional help.
We arrived in the sept and by applying to file "late" for the year we were able to claim almost everything DH had paid in tax as I wasn't working and he claimed me as a deduction. ( something to do with 183 days - I'm not a tax pro obviously, hence why we got help)
If nothing else we were able to have a face to face meeting and ask lots of questions. I think it was around $370 in 2006 ( but we got $$$$ back....)
A
We arrived in the sept and by applying to file "late" for the year we were able to claim almost everything DH had paid in tax as I wasn't working and he claimed me as a deduction. ( something to do with 183 days - I'm not a tax pro obviously, hence why we got help)
If nothing else we were able to have a face to face meeting and ask lots of questions. I think it was around $370 in 2006 ( but we got $$$$ back....)
A
#13
Re: US tax return for first year.. can anyone help?
I also wanted to mention that Pete Newton is a really nice guy and very patient! Definitely contact him. He has helped quite a few expats on here and he knows his stuff!
#14
Forum Regular
Joined: May 2010
Posts: 101
Re: US tax return for first year.. can anyone help?
I would second using Pete Newton.......he did our first US tax return last year and was a great help navigating the US bureaucracy.
Although you could do it yourself, I would strongly recommend using a professional first year.
Money well spent.
Although you could do it yourself, I would strongly recommend using a professional first year.
Money well spent.
#15
Forum Regular
Thread Starter
Joined: Jan 2011
Posts: 174
Re: US tax return for first year.. can anyone help?
thank you very much