[dhavalss]

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

[AtlantaTaxExpert]

Redundant post; already answered.

[dhavalss]

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

[AtlantaTaxExpert]

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.