The passage of the Tax Cuts and Jobs Act of 2017 has had far-reaching effects within the domestic sector of the global mobility industry, however, international employee relocations have been impacted as well. All of the benefits that are affected from a domestic perspective will have the same implications on international moves if those benefits are included in an international relocation package. For example, household goods shipments and final move benefits are typically included in both international and domestic employee mobility packages. As of 1 January 2018, both of these benefits have been deemed as taxable, with no distinction between the benefits being administered domestically or internationally. It will be up to companies on an individual basis to determine if they are going to consider grossing up the taxes for both of these benefits going forward. Read More
Category: Alternative Minimum Tax
With the passage of the Tax Cuts and Jobs Act of 2017, there are key changes to the tax treatment of several common relocation benefits. Whether you are an employee moving domestically or globally or an employer who relocates employees, it is important to be aware of these changes as we head into tax season.
It might seem way too early to think about 2015, but when it comes to taxes, now is the perfect time.
Many of the employees of our relocation clients were hit with a heavier tax burden this year, just some of the 3.9 million Americans that had to pay the dreaded alternative minimum tax, aka AMT. Under our dual tax system, taxpayers have to pay whichever amount is higher – regular income tax or AMT. The AMT does not allow many of the deductions allowed on regular returns – personal exemptions, standard deductions and deductions for state and local taxes paid.