Moving expenses out of the country are generally NOT deductible and are taxable if paid by the company.- JOB HUNTING expenses -
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To ensure your receiving Social Security in the future, you need 40
credits but you can transfer some of your Canadian years of working under CPP to
the FICA calculation.
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) expert US Canada Canadian American Mexican Income Tax service help.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com or www.garygauvin.com. If you forward this message, this disclaimer must be included."
Hi Gillian (and David!!),
I
just got my tax forms from you—I’m so happy you’re there again! I have no
idea exactly what my questions to David were and couldn’t even trace them back
in my “Sent” box!
At a guess, though, one would have been, is there anything deductible
about getting a “new” car that cost a bit over $3,000 once it was repaired per
CAA instructions?
The second is a new question for me. I am job-hunting in the
Pacific Northwest and am not sure which side of
the border I might fetch up, pension/social security-wise, etc. I have been
working in the U.S. Canada Portland
Glad I get a refund, though—enough to pay off the credit cards, add a bit
to the “moving fund” and then only have to focus on paying off the huge student
line of credit (ugh!) Maybe I’ll go ahead and get that netbook I’ve been
wanting, though! (Samsung NC10). It’s hard drive is twice the size of my current
laptop!
Hope you have some thoughts for me about the moving between countries
thing—it’s the kind of thing that’s too complicated for my pea brain to figure
out!
-----------------------------------------------------------
david ingram replies:
You
are not the only one. So many Canadians are being laid off in the US with
their job loss problems that I have even be asked to write about it by Stockwell
Day.
Job hunting expenses are deductible AS IN:
If you travel to an area to look for work in your current occupation or
attend an interview you can generally deduct the ordinary and necessary travel
costs. The purpose of the trip must be considered. Trips that are primarily
personal are not deductible. For more information on how to compute your travel
expenses, see Publication 463, Travel, Entertainment, Gifts and
Car Expense.
Some moving
expenses are deductible.
The following is from the IRS.gov site.
See form
3903 for an example of what you need. Generally it is the cost of a moving
company and travel costs and lodging for you to get there. Unlike
Canada, the US does NOT allow the deduction of real estate commissions to sell
your old house of meals on the way.
However,
Canada does NOT allow moving in or out of the country in general and neither
country allows moving expenses for exempted income.
So unless you are still a full time student who has just graduated in
the US and are moving back to Canada or a member of the armed
forces, etc. your move to Canda would not be deductible.
A move to
Seattle would be:
See form
3903 at: http://www.irs.gov/pub/irs-pdf/f3903.pdf
Topic 455 - Moving
Expenses
If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your moving expenses. To qualify for the moving expense deduction, you must satisfy two tests. Under the first test, the "distance test", your new job must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job must be at least 50 miles from your old home.
The second test is the "time test". If you are an employee, you must work full-time for at least 39 weeks during the first 12 months right after you arrive in the general area of your new job. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new work location. There are exceptions to the time test in case of death, disability and involuntary separation, among other things.
If you are a member of the armed forces and your move was due to a permanent change of station, you do not have to satisfy the "distance or time tests".
Moving expenses are figured on Form 3903 (PDF) and deducted as an adjustment to income on Form 1040 (PDF). You cannot deduct any moving expenses that were reimbursed by your employer.
For more information on deductible moving expenses, please refer to Publication 521, Moving Expenses.
NOTHING IS DEDUCTIBLE IN BUYING A NEW CAR UNLESS IT IS ONE USED IN
BUSINESS.
However, to get the full US
MEDICARE benefits, you do need 40 credits (10 years) to qualify at the cheapest
rates. It is possible to get it with 28 31, 37, etc. credits but the fees
are up to 3 times higher.
My advice would be for you to
work the full 10 years before returning to Canada. I think you have a
green card and if so and you want to keep it, you MUST file form I-131 BEFORE
you leave the USA.
------------------------------------------------------
david ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) expert US Canada Canadian American Mexican Income Tax service help.
pert US Canada Canadian American
Mexican Income Tax service and
help.
David Ingram gives expert income
tax service & immigration help to non-resident Americans &
Canadians from New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com or www.garygauvin.com. If you forward this message, this disclaimer must be included."
“Not
everything that can be counted counts,
and not
everything that counts can be counted.”
-- Albert Einstein
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