CATEGORY:Tax-Related
  • Who should I direct my questions in regards to my specific tax situation?:

    If you have specific questions relating to your relocation, it is highly recommend that you speak your Tax Accountant.  

    You may also contact the IRS phone 800.8291040 / website  IRS  

    or  State and Local Tax Authorities 

     

  • As a corporation, I’d like to move an employee to our corporate headquarters from the regional office. The employee is only about an hour away, but the drive would be too much on a daily basis. Would the move be considered a relocation from a tax standpoint?:

    To determine who's eligible, the IRS has set up two tests--pass them and you can cash in; fail and you have to eat all the costs of your move. Keep in mind, the IRS lets you take this deduction only if you are moving because of a job. It doesn't matter if it's a new job, the same job or your first job. (Recent college grads, take note.) Your first challenge will be to pass the 50-mile test. That means the distance between your new primary job and your former home must be at least 50 miles greater than your old commute. So if you lived 10 miles from work and your new office is 45 miles from your old home, you lose. You can't deduct your moving expenses. If, on the other hand, your new office is 65 miles from your old home, then your new commute is 55 miles longer and you pass the first test. The second test was designed to prove that you moved for work and not just for a change of scenery. It requires that you be employed full time in the general area of your new job location for at least 39 weeks during the 12 months after you make the move. This means you are allowed to switch jobs as often as you'd like after the move. If your employer transfers you again or even lays you off, the IRS won't hold it against you and will waive the 39-week test.

  • Why were my total earnings on my W-2 higher than my salary?:

    Many relocation expenses are considered a taxable benefit to you, whether paid directly to you or paid on your behalf. These amounts are added to your income.

  • Are there programs to tax protect our organization?:

    Yes, it is important to be aware of such products as Buyer Value Option (BVO) and Amended Value Option (AVO) when structuring your program. What you select will determine how to tax protect the organization.

  • CATEGORY:Tax-Related
    Who should I direct my questions in regards to my specific tax situation?:

    If you have specific questions relating to your relocation, it is highly recommend that you speak your Tax Accountant.  

    You may also contact the IRS phone 800.8291040 / website  IRS  

    or  State and Local Tax Authorities 

     

    As a corporation, I’d like to move an employee to our corporate headquarters from the regional office. The employee is only about an hour away, but the drive would be too much on a daily basis. Would the move be considered a relocation from a tax standpoint?:

    To determine who's eligible, the IRS has set up two tests--pass them and you can cash in; fail and you have to eat all the costs of your move. Keep in mind, the IRS lets you take this deduction only if you are moving because of a job. It doesn't matter if it's a new job, the same job or your first job. (Recent college grads, take note.) Your first challenge will be to pass the 50-mile test. That means the distance between your new primary job and your former home must be at least 50 miles greater than your old commute. So if you lived 10 miles from work and your new office is 45 miles from your old home, you lose. You can't deduct your moving expenses. If, on the other hand, your new office is 65 miles from your old home, then your new commute is 55 miles longer and you pass the first test. The second test was designed to prove that you moved for work and not just for a change of scenery. It requires that you be employed full time in the general area of your new job location for at least 39 weeks during the 12 months after you make the move. This means you are allowed to switch jobs as often as you'd like after the move. If your employer transfers you again or even lays you off, the IRS won't hold it against you and will waive the 39-week test.

    Why were my total earnings on my W-2 higher than my salary?:

    Many relocation expenses are considered a taxable benefit to you, whether paid directly to you or paid on your behalf. These amounts are added to your income.

    Are there programs to tax protect our organization?:

    Yes, it is important to be aware of such products as Buyer Value Option (BVO) and Amended Value Option (AVO) when structuring your program. What you select will determine how to tax protect the organization.