Tax Reform and Transferees: What You Need to Know

Tax reforms in 2018 will have an impact on deductions and property taxes. Here is a brief summary of the primary changes. Please note that individuals should always consult their tax advisors. Moving Expense Deduction As of January 1, 2018, movement of household goods, storage and final move travel are taxable to transferees. With the elimination of the moving expense deduction, the "50 mile",

Which Relocation Expenses Can Be Excluded from Income Tax?

Regardless of the distance or time of year, relocating for a job is an expensive undertaking. Fortunately, many employers have relocation packages in place that reimburse employees for some, or all, of their moving expenses. Some relocation expenses are excludable from income tax, while others are considered additional taxable income by the IRS. Learn more about relocation and U.S. taxes in our

Tax Gross Up Formula & How to Calculate Gross Up

What is Tax Gross Up? A tax gross up is when the employer offers an employee the gross amount that will be owed in taxes. This additional income helps to relieve the employee of the tax liability associated with relocation expenses. For example, if the relocation costs include $5,000.00 taxable dollars, the employer may pay a total of $7,500.00 so that the employee gets the full benefit of the

December Relocation Survey

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings along with the next survey the following month. Below are the results for last month's survey and this month's survey questions. November Survey Results 1. Does your company offer a lump-sum package for global relocations? 67%

Claiming Tax-Deductible Relocation Expenses

Many potential transferees find that they must turn down an otherwise lucrative job transfer due to the high cost of moving. Some employers choose to underwrite everything from helping an employee list and sell their current home, to handling all transfer-related details – including movers and travel – although not all expenses may be covered or reimbursed. This is where tax deductions come in

Relocation and Taxes: What Are the Employer's Responsibilities?

Payment or Reimbursement for Moving Expenses Any employer-paid reimbursements or payments of an employee's job-related moving expenses are considered income for the employee only to the extent that he or she would not be able to deduct them as expenses. If expenses meet the eligibility requirements under the IRS Code Section 217 and an accounting of expenses are furnished by the employee to his

Tax Deductible Relocation-Related Expenses

No one wants to pay higher taxes on top of the usual stress of moving, so your transferring employees will need to know which expenses are deductible and which are not. Only those qualified expenses not directly reimbursed by the employer may be deducted. Any reimbursed expenses or those paid directly to a vendor, such as a moving van company, are not deductible, but usually are excluded as

IRS Initiates Policy Changes Regarding Tax Reporting for Expats Living Abroad

Moving and living abroad can result in complicated situations—especially where finances are concerned. For the estimated 335,000 expat U.S. citizens who earn an income overseas, it can be even more complicated than for other nationalities, since the United States is the only country that requires its citizens to file overseas income taxes on peril of losing citizenship. The Foreign Account Tax

Tax Considerations for Relocating Canadian Employees to the U.S.

In today’s labor market, talent mobility is becoming increasingly important. First, there’s a growing necessity for companies to function at a global level. Thanks to continuously improving communications technology, organizations are collaborating with partners and breaking into markets overseas. As a result, there are more relocation opportunities for employees to gain international experience.

How Does Relocation Assistance Affect Taxes?