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    Vinay1978's Avatar
    Vinay1978 Posts: 4, Reputation: 1
    New Member
     
    #1

    Jan 27, 2009, 06:07 PM
    Moving expenses deduction
    I have a question with respect to my tax return for 2008. Following is my situation:
    1) I moved from India to USA in Jan2008 and worked full time for CompanyA
    2) In Mar2008, I switched employers and worked full time for the rest of the year for CompanyB
    3) My wife moved to USA to stay with me from March2008

    I would like to know if I can claim the moving expenses deduction for 2008.

    If yes, I have two questions:
    1) What would be the Rupee to Dollar conversion rate that would be applied? Would it be the conversion rate in Jan2008 (time at which tickets were purchased) or the current conversion rate?
    2) I do not have bills for any of the moving expenses like air tickets, lodging after arriving in USA, bill for the computer I bought, etc. Is it possible to claim moving expenses deduction under these circumstances?

    Thank you very much for your time.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Jan 28, 2009, 12:20 AM

    You may not be eligible to claim moving expenses from India to the U.S. as you worked for Company A for short period. You should check more about this.
    You may claim for moving from A to B if you plan to stick with B.
    You can claim moving expenses if you meet the requirements, read: Your U.S. Tax Return: Moving Expenses
    Vinay1978's Avatar
    Vinay1978 Posts: 4, Reputation: 1
    New Member
     
    #3

    Jan 28, 2009, 09:20 AM

    Thank you very much for your response.

    Should the bills for moving expense be attached to the tax returns?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Jan 29, 2009, 08:26 AM
    Do NOT attach the bills for the move to your return. If the costs are reasonable, they will not normally be questions. Keep the bills in case the IRS questions the costs.

    In my opinion, you CAN claim the moving expenses from India to the work place for Company A, because your job change was NOT anticipated.

    Use the conversion rate at the time the expense was incurred. There are several websites that provide historical conversions rates for as far back as 20 years.
    Vinay1978's Avatar
    Vinay1978 Posts: 4, Reputation: 1
    New Member
     
    #5

    Jan 29, 2009, 02:58 PM

    Thank you very much for your response. Since I do not have bills for any of the moving expenses, I will not be claiming moving expenses.

    1) I have an apartment and an empty site in India, for which I have been paying principal and interest in 2008. Is it possible to enter these amounts (principal AND interest) under house mortgage costs in form 1040?
    2) My wife does not have an SSN, but my son does. Is it possible for us to get the stimulus package refund, which I believe is $1500?
    3) Is it possible to deduct internet charges as deduction?
    4) Is it possible to deduct car buying cost?

    Thanks again for your time.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #6

    Jan 29, 2009, 03:30 PM
    1) you CAN claim these expenses, but it likely will NOT exceed the $10,900 standard deduction.

    2) Only if you file without your wife. Her ITIN will invalidate any Recovery Rebate.

    3 & 4) Negative.
    Vinay1978's Avatar
    Vinay1978 Posts: 4, Reputation: 1
    New Member
     
    #7

    Jan 31, 2009, 11:23 PM
    Thanks again for your time.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #8

    Feb 2, 2009, 02:48 PM
    Glad to help!

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