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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 If you are in HR, and you have a relocation tax policy that is more than a year old, you should consider it outdated, possibly irrelevant. 

Are Tax Gross-ups Worth It?

As we know all too well, the tax implications of relocating employees is significant. With the exceptions of household goods moving, 30 days of storage, final move expenses and compliant home sale programs, many relocation benefits are taxable to the employee. Further, not only must you treat the other expenses as income to your employee, you must also treat any tax assistance for covered benefits as taxable income as well. 

How to Project Relocation Costs More Efficiently

Relocation BudgetWith relocation busy season around the corner, relocation managers are probably dusting off their policies and taking a good look at relocation budgets. But, how realistic are those budgets? One of the biggest challenges that human resources and procurement managers face is the difficulty of designing a proper relocation budget and then sticking to it when the rubber hits the road. That’s why clear cost projections are the linchpins that connect cost containment with adequate relocation benefit delivery. In order to ensure clear projections, its critical to get the most accurate view of anticipated costs right out the gate, preferably before an offer has been extended to the potential transferee. 

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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