Tax filing after relocation

[knightfox]

I'm relocating to Dallas, Texas in last week of Feb, 2020. I have few questions related to tax filing.

1. Tax deadline is April, 2020. So I have to file tax for income earned in USA after feb, 2020 only and not declare my earnings outside India for year 2019-2020?
2. My company offers relocation assistance but take tax upfront. Should this amount be declared as salary as well.
3. In India we pay advance tax and claim reimbursement after filing tax. Is it same in USA as well?

[Lewis-H]

If you moved to a new location because of work, you may qualify to use IRS Form 3903 to claim the cost of your moving expenses as a deduction on your federal income tax return. For tax years prior to 2018, the IRS allows taxpayers to deduct eligible moving costs from the taxable income they report on Form 1040.

[Angelo1]

Hello,
If I understood you correctly, you are saying that you moved from India into the United States during 2020. If you are were not an US citizen or alien of the USA by law you are not required to file any taxes. April 2020 was the deadline for all the legal aliens or citizens to file taxes for 2019 but due to Covid-19 it was postponed to July 15th. I hope this answers your question.

[RickRealProperty12]

1. Tax Timeline: The April 2020 deadline was for income earned in 2019. If you arrived in Feb 2020 and had no US income in 2019, you generally do not need to file a 2019 US tax return. You will file your 2020 taxes (covering your time in the US) in April 2021. Whether you must report global income will depend on your specific visa and if you meet the IRS Substantial Presence Test for 2020.

2. Relocation Assistance: Yes, employer-paid relocation expenses are considered taxable income in the US. This total amount will be included on your year-end W-2 wage statement. The tax they withheld upfront is credited toward your overall tax liability.

3. Tax Withholding: The US system is very similar to what you described. Your employer automatically deducts (withholds) an estimated tax from every paycheck. When you file your annual tax return, you calculate the exact amount owed. If your employer withheld too much over the year, you receive a refund. If they withheld too little, you pay the difference.

Hope this helps make the transition smoother!