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maddyatl
Jun 19, 2007, 03:09 AM
Hello

My company is willing to reimburse $1500 for relocation expenses.
I have kept receipts of everything including gas, food etc etc but have not claimed these reimbursements yet.
I am still working as an intern here in CA (CPT status) and I am a F1 student visa holder employed 1/2 time (20hrs/week) in GA.
How should I claim them or tell the company to draft my income/W2 in order to avoid taxes on $1500 reimbursible relocation.
Thanks.

AtlantaTaxExpert
Jun 19, 2007, 02:22 PM
If you are reimbursed under an accountable plan (you file a claim for moving expenses and provide the receipts; they reimburse only up to the claim amount), then the moving reimbursement should NOT be taxable. However, you will NOT be able to claim any moving expenses on your tax return.

If you are reimbursed under a non-accountable plan (they just GIVE you the $1,500 with no receipts), then the $1,500 is considered taxable income. However, you can then claim limited moving expenses by filing Form 3903 with your tax return next year.

It is rare that the employee is given a choice. Usually, the COMPANY decides how they will handle the moving reimbursement. Suggest you double-check with your employer to make sure you have got your facts straight.