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varsh · Jun 17, 2008, 06:22 AM

Hi,
I was wrking in Danbury for my parent company (which is an Indian softwre firm) for an American corporation. I recently relocated to Stamford (30 miles from Danbury) for the same parent company but for a different american client. My parent company refiuses to give me settling down expenses as they say that the IRS guidelines say that I have to have moved for more than 50 miles. But I thought I can claim that expense and still make it a taxable component. Please throw some light on this...

Thanks

AtlantaTaxExpert · Jun 17, 2008, 07:52 AM

Your company is correct.

A 30 mile move is considered to be within normal commuting distances, so a decision to move from one house/apartment to another is NOT driven by job considerations, but rather is a PERSONAL decision.

varsh · Jun 17, 2008, 08:06 AM

What you have said is right in case I had moved on my own. But this move was made by my parent company itself and not initiated by me.

MukatA · Jun 17, 2008, 06:22 PM

You can not deduct moving expenses. Read this: Your U.S. Tax Return: Moving Expenses

varsh · Jun 18, 2008, 06:43 AM

I am not talking about deductions here. I am talking about entitlements, as in am I not eligible to be paid the moving expenses by my employer, especially since they were the ones who made me move?

Maybe this is the wrong forum, but I posted this query in a HR forum and the next time I see it, it is here in the TAX forum! :(

AtlantaTaxExpert · Jun 18, 2008, 08:15 AM

Most companies use the IRS standard, because that is what is used as reference if the company were to reimburse you and then have ITS deductions denied if the IRS challenged them.

ScottGem · Jun 18, 2008, 08:18 AM

Originally Posted by varsh

I am not talking about deductions here. I am talking about entitlements, as in am i not eligible to be paid the moving expenses by my employer, especially since they were the ones who made me move?

Maybe this is the wrong forum, but i posted this query in a HR forum and the next time i see it, it is here in the TAX forum! :(

Yes I moved this to Tax, because it appeared your question was related to tax implications.

As to what you are eligible for through your employer, that depends on their written policy. If the policy says that they will pay moving expenes when the job move is more than 50 miles away, then you are stuck. There is no law governing this, its all dependent on company policy.

varsh · Jun 18, 2008, 11:41 AM

Okies... I'll let it go then. Thanks a lot guys... you all have been really helpful...

MukatA · Jun 18, 2008, 07:03 PM

You may be able to deduct some expenses under employee business expenses as itemized deduction.
Read Your U.S. Tax Return: Itemized Deductions