Moving Overseas can be a taxing question.
Moving Overseas, A Taxing Question
One of the most frequently asked international moving questions we get here at UPakWeShip is do your prices for international moving include taxes and all fees.
Well the good news is there are no taxes on overseas shipping so the quote you get from UPakWeShip for your international move will be all inclusive and no extra taxes will be listed on your invoice.
So for example if you were moving from New York to London and we quoted you $1200.00 then the invoice will say $1200 and there will be no extras taxes to pay.
However if you buy packing materials from a store you will have to pay taxes on the purchase of the boxes. Also bear in mind if you need temporary storage overseas then the mover has to treat this as a domestic item and in most countries you will have to pay taxes on the storage charge. Again for example if you were moving to London and you needed storage and you were quoted 15 pound per week then the invoice for 10 weeks would be 150 UK Pounds plus vat tax @20%
While on the subject of taxes, did you know if you are an American Citizen you will still have to file a tax form every year with Uncle Sam, even though you are living overseas. You don’t however normally have to pay taxes in both countries as there are International tax agreements but check with a qualified accountant specializing in International Taxes for more information.
A little bit of good news though is you can use a tax deduction when moving overseas or even long distance across the USA.
If your employer reimburses you for the cost of transporting household goods and personal effects, 30 days of in-transit storage and traveling from the old location to the new, these are considered Excludable expenses and will not be considered as income. Deductible items are costs that you were not reimbursed for, that qualify for allowable deductions.
If your company gives you a lump sum to pay for your international relocation, keep track of the actual costs that qualify as allowable moving expenses because you’ll be able to report them on the IRS form 3903 and deduct on your federal form 1040. Your accountant can advise more information on tax deductions.
However if you need advice on moving from America to overseas like Australia, Europe, New Zealand etc then don’t forget to post your questions online to Ask The Moving Doctor.
Need an affordable International Moving Rate? Get a quick quote from UPakWeShip.
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