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David Oltman

ReloTax: Understanding The New Closing Disclosure Forms

As some of you may already know, there are many significant changes this year, including all new tax rates and tables. Further, the government relocation and FTR rules have been updated including new Canadian tax revisions as well. And, as we’ve discussed for the past few months, the new 2015 Closing Disclosure form – the one replacing the HUD-1 which becomes effective October 3, 2015 is included and discussed in great detail.

2015 Relocation Tax Information

Relocation TaxAt the end of every year, we try to share as much tax information as possible so that HR, payroll and relocation managers know what to expect in the coming year. This year, INEO has been kind enough to share with us a side-by-side comparison of 15 Federal Taxes and Gross-ups for years 2014 and 1015. As such, we want to share it with you. A very special thanks to David Oltman for providing us with this crib sheet. To read more about relocation tax, please take a spin through David’s other blogs here, including this year’s Top 15 Payroll and Relocation Tax Issues for 2014. Comparison tables are after the jump, but for a printable version, please visit: 15 Federal Taxes and Gross-ups.  

Top 15 Payroll and Relocation Tax Issues for 2014

Relocation Tax ExpertEvery year, we have tax changes that we need to know about in order to give our clients and their transferees the tools they need to account for their year-end tax situation. This year, however, it’s important to note that there is so much going on when it comes to relocation taxation and payroll that human resources, third party relocation companies and transferees should be taking the time now to understand the nuances. If you are in HR, and you have a relocation tax policy that is more than a year old, you should consider it outdated, possibly irrelevant. 

The Mobile Workforce Bill and the 30 Day Rule for Temporary Assignments

There has always been some confusion around tax filings for employees on temporary assignments. At what point should companies withhold state and local taxes for assignees? One day? One week? A month? Technically, if even one day is spent working in a state, then local and/or state taxes may need to be withheld. Most companies, however, use a 30 day rule where if one month or more is spent in a state, then they will proceed with withholding state and local taxes. It’s important to know that the popular 30 day rule is not a law – it is simply an industry practice.

Tax Series: Per Diem Rates Go Unchanged for Fiscal Year 2013

Relocation Tax ExpertIn my last post about tax issues that will impact relocation in 2013, I want to cover per diem rates. This really only applies to government employees, but some corporate programs do follow the government rates when it comes to per diem. If you are a relocation manager for a government entity or a business that follows government rates, then you already know that the Government Services Agency (GSA) establishes the per diem rates for the United States. These are the maximum allowances that federal employees are reimbursed for expenses incurred while on official travel. This travel does include home finding trips, so your transferees will be impacted.

Tax Series: Relocating Employees to Community Property States

David Oltman Relocation Tax ExpertA few weeks ago, I published a post about the tax uncertainty in Washington, D.C.  Unfortunately, the fiscal cliff continues to loom before us and I still cannot say definitively what will change. That said, however, I can hone in on some likely changes and promise to share them here.

We’ve already discussed the Medicare and capital gains tax that will probably go through in the New Year. You can find that post here – it’s the first of a series of relocation tax articles I will post here. Today I want to discuss the second issue I see coming down the pipe: community property states.

Relocation Tax Series: Medicare and Long-Term Capital Gains Tax

David Oltman Relocation Tax ExpertThere has been much conversation about the current tax uncertainty in Washington. Unfortunately, while our lawmakers duke it out on the hill, businesses everywhere are frozen on the edge of a “tax cliff,” unable to make informed decisions on tax and business planning for 2013. Despite the fact that all business – small and large – will be negatively impacted by further delay in tax policy decisions, and that respectable tax authorities, including the AICPA, are pleading for clarity, our politicians have yet to throw down their armor and strike a compromise.

Most Commonly Lost Tax Credits Due to Relocation

Relocation Tax ExpertAs most relocation managers know, certain relocation benefits such as taxable reimbursements for house hunting, temporary living, and closing costs on a new home (just to name a few) must be counted as income and reported on a transferee’s W-2. While these benefits are necessary and provide a valuable service, they can push the transferee’s earnings past income thresholds for some tax deductions, exemptions and credits.

Three Tax Changes that Will Impact the Relocation Industry this Year

When people ask me which aspect of tax is the most difficult for the relocation industry, I always say that half the battle is staying current on tax changes. The other half is knowing which rules (out of so many) have the potential to impact a transferee. It’s important to remember that, more often than not, rules that seem to be unrelated to relocation actually pack a major tax punch for relocating employees.

Home Buyer Tax Credit a Complicated Issue for Relocating Employees

David Oltman Relocation Tax Expert

David Oltman

Relocating employees and their employers are facing a tricky tax issue as a result of the home buyer’s tax credit.  From April 2008 to June 2010 first time home buyers and non-first time home buyers were able to take advantage of tax credits of up to $8,000 and $6,500, respectively. Surely, a number of employees purchased homes for this reason and likely claimed the credits on that current year’s 1040 tax form (and IRS Form 5405) without thinking much of it.


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