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Topic: Relocation Expenses and US Taxes  (Read 1055 times)

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Relocation Expenses and US Taxes
« on: November 29, 2009, 05:31:07 PM »
Who here has successfully been reimbursed for their moving expenses from the US to the UK? This is specifically to those of you who did not have reimbursement through your employer. I think about $6000 of our moving expenses(out of $10,000 US) will be tax deductible...how does that work? Do you get that money back or only a percentage? And if a percentage, how much of one?

Thanks in advance!


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Re: Relocation Expenses and US Taxes
« Reply #1 on: November 29, 2009, 08:15:12 PM »
Well, I didn't do this for an international move, but I did previously deduct my moving expenses three years ago when I moved to Boston for a job. It's a deduction, so you don't get the money back, but it does reduce the amount of taxes you have to pay for the year.  I wouldn't expect to see a huge amount back to be honest, but it was enough to help me go from owing taxes to getting a small-ish refund back. 


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Re: Relocation Expenses and US Taxes
« Reply #2 on: November 29, 2009, 09:07:54 PM »
Inspite of the moving deduction...we had to pay a buttlaod of taxes this year. We usually get something back.

:(


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Re: Relocation Expenses and US Taxes
« Reply #3 on: November 29, 2009, 10:21:54 PM »
The moving expense deduction on your US tax return in the year that you move to the UK will probably make little or no difference to the bottom liner because if you claim more moving expenses you may lose out on some of the foreign earned income exclusion or foreign tax credits you'd otherwise qualify to claim (the rules are designed so you can't "double-dip").

Here in the UK you may be able to deduct some of the moving costs, so there may be some tax advantage.

Paying a load more US taxes in the year of move as smocha has done is highly unusual.  Normally US taxes go down ... only to be replaced by UK taxes.


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