TAX QUESTIONS??

[Umka36 781]

Did your wife get a 1098-T from the school where she attended the CNA course?

Here is the problem I think you will have when you try to claim the moving expense deductible.

Time Test for Employees

If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Full-time employment depends on what is usual for your type of work in your area.

For purposes of this test, the following four rules apply.

• You count only your full-time work as an employee, not any work you do as a self-employed person.

• You do not have to work for the same employer for all 39 weeks.

• You do not have to work 39 weeks in a row.

• You must work full time within the same general commuting area for all 39 weeks.

Based on your timeline she was here on July 2013, and if she starts next week that would only have work about 24-25 weeks within the 12 months since she arrived.

http://www.irs.gov/p...blink1000203444

Edited January 10, 2014 by Umka36

[rin and john 71]

So how about the 983.00 we paid for her CNA course here in USA? The State fee of 275.00 to take the exam and get her CNA license. Her required

uniforms 150.00 (uniform scrubs required for course and work), stethoscope, spygmamometer, thermometer and other WORK supplies 200.00. This

all occurred in US after arrival. She starts work as a CNA Monday and I am so proud of her. She has done amazing things in the 5 months that she has been here.

David

Typically the moving expenses are for costs related to changing jobs. However, reading thru the IRS info, you have a valid argument. I'd file it that way and if audited explain your reasoning. If the IRS disagreed with your logic, they would just charge you the tax difference as it is not willful tax fraud.

With regards to employment costs, they are deductible on Schedule A (lines 21-27). However, only the portion over 2% of AGS is deductible.

[rin and john 71]

Did your wife get a 1098-T from the school where she attended the CNA course?

Here is the problem I think you will have when you try to claim the moving expense deductible.

Time Test for Employees

If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Full-time employment depends on what is usual for your type of work in your area.

For purposes of this test, the following four rules apply.

• You count only your full-time work as an employee, not any work you do as a self-employed person.

• You do not have to work for the same employer for all 39 weeks.

• You do not have to work 39 weeks in a row.

• You must work full time within the same general commuting area for all 39 weeks.

Based on your timeline she was here on July 2013, and if she starts next week that would only have work about 24-25 weeks within the 12 months since she arrived.

http://www.irs.gov/p...blink1000203444

The intent is to meet the 39 week time test. See Figure B, note 3 in your link. If they take the moving expense deduction and subsequently fail the time test, they are supposed to file an amended return.

Further in your link,

"Time Test Not Yet Met

You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015.

If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. See When To Deduct Expenses later, for more details."

[Bill & Ivy 6]

You can probably use creative tax interpretation to be able to deduct most if not all the expenses you are referring too. The US tax code is so open to interpretation you can get away with many things, unless you get audited, at that time you will then get a very definitive explanation of the tax codes by the IRS auditor. I have been audited by the feds twice in my life, and I also used a CPA, who was there at both audits to answer there questions. For the most part for me, the audits went somewhat ok, but the problem is once they audit you for a particular reason, they will try there best to keep digging until they can find something to get you on, so that the audit is somehow paid for by you by a penalty of some sort. My guess is that non of the things you would like to deduct from the move, would actually make it through an audit,,,but your chances of getting audited are also quite small, so you make the call..

[David & Diana R 1,005]

Typically the moving expenses are for costs related to changing jobs. However, reading thru the IRS info, you have a valid argument. I'd file it that way and if audited explain your reasoning. If the IRS disagreed with your logic, they would just charge you the tax difference as it is not willful tax fraud.

With regards to employment costs, they are deductible on Schedule A (lines 21-27). However, only the portion over 2% of AGS is deductible.

Mahalo!!

The intent is to meet the 39 week time test. See Figure B, note 3 in your link. If they take the moving expense deduction and subsequently fail the time test, they are supposed to file an amended return.

Further in your link,

"Time Test Not Yet Met

You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015.

If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. See When To Deduct Expenses later, for more details."

Thanks!!

[Umka36 781]

The intent is to meet the 39 week time test. See Figure B, note 3 in your link. If they take the moving expense deduction and subsequently fail the time test, they are supposed to file an amended return.

Further in your link,

"Time Test Not Yet Met

You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015.

If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. See When To Deduct Expenses later, for more details."

I stand corrected based on the "Time Test Not Yet Met". Personally I would not claim the moving expense deductible, but recommend the OP talk with a CPA should he still want to claim the moving expense deductible. Trying to claim both the school and moving expense on the same person looks suspicious to me, but hey I'm not the IRS so it doesn't mean anything.

[Rich and Wen 101]

I would have to say, from reading all these posts, that he cannot deduct moving expenses. According to the '39 week rule', one must "work full time for 39 weeks during the first 12 months" at your new location. Since his wife went to school for 5 months, the only way she could meet the 39 week test is if she was working full time at the same time she was attending school.

How long did it take her to get EAD? If it took one week longer than 3 months, that by itself might eliminate the possibility of deducting moving expenses. Filing a tax return and claiming moving expenses when you KNOW that the 39 week test cannot be met (and intending to amend later), is filing a fraudulent return.

[Girl from Celebes 588]

So how about the 983.00 we paid for her CNA course here in USA? The State fee of 275.00 to take the exam and get her CNA license. Her required

uniforms 150.00 (uniform scrubs required for course and work), stethoscope, spygmamometer, thermometer and other WORK supplies 200.00. This

all occurred in US after arrival. She starts work as a CNA Monday and I am so proud of her. She has done amazing things in the 5 months that she has been here.

David

She's one of hard working Filipinos, one thing that I admire about the Filipino people. I knew some of them and probably continue to know more of them in the future. Wish the best for her.

[JRF 117]

I personally don't believe you will be successful claiming move expenses - particularly because of the timing and the intent of the move. Educational expenses...maybe. That said you need to balance cost and benefit. You claim approx $1,000 in potentially deductible education expenses. Even at the margin that's worth $350 if you are in the highest tax bracket.

My advice (and I'm a CPA but not a tax preparer or expert) is to follow the intent of the reg and not try to structure things to fit inside the lines. The intent is to encourage job retraining to promote employment (and more tax revenue). I don't like to pay more than I owe but...I also don't want the distraction of an audit. Unless it was worth a lot of dough. Then...maybe.

[David & Diana R 1,005]

I personally don't believe you will be successful claiming move expenses - particularly because of the timing and the intent of the move. Educational expenses...maybe. That said you need to balance cost and benefit. You claim approx $1,000 in potentially deductible education expenses. Even at the margin that's worth $350 if you are in the highest tax bracket.

My advice (and I'm a CPA but not a tax preparer or expert) is to follow the intent of the reg and not try to structure things to fit inside the lines. The intent is to encourage job retraining to promote employment (and more tax revenue). I don't like to pay more than I owe but...I also don't want the distraction of an audit. Unless it was worth a lot of dough. Then...maybe.

Thanks,

Yeah I don't want to push anything either. Thats why I asked the questions. I have always reported 100% of my income and have been very conservative with my tax preparation/deductions.

[David & Diana R 1,005]

She's one of hard working Filipinos, one thing that I admire about the Filipino people. I knew some of them and probably continue to know more of them in the future. Wish the best for her.

Thanks for the well wishes! God Bless