Hello Mr. ExpterT,

I am a resident of Canada and moving to San Diego, CA for work in October.

My company is paying me a lumsum amount of $10,000 USD for relocation. Do you have any idea on approximately how much of it would be taxed.

Also, I have to repay an educational loan from the salary(USD) I will earn in US, will that amount be eligible for filing a tax exumption.

Thank you very much.

Cheers,
Dhaval

Redundant post; already answered.

Likely, the entire lump sum will be taxed. But you can claim certain moving expenses to offset some of the taxes.

The interest on the student loan should also be deductible.

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Thanks, further in conjunction to it..

Do you have any idea of how much % of tax will be applied on 10,000 bonus in California.

Can I claim the expenses of comodities which I will purchase due to relocation and won't cary with me (new TV, new Desktop, Kitchenware, etc) to offset taxes

I have flexible option of joinig date with my firm in San Diego. Do you forsee any possibility of saving taxes if I join on a later date. i.e. If income earned in US in a year is below certain amount, that is altogether exempt from taxes or falls under lower bracket.

Thanks.

-Dhaval

The withholding should be 30%; how much is actually taxed depends on your overall income level.

You CANNOT claim the purchases on the new commodities as moving expenses; only the cost of moving what you already have.

I would not let taxes decide when you should report.