Hi,
A lot of people here have successfully R2Ied and got their relocation packages (expenses reimbursed). I have a question though, what receipts do companies expect to be presented for reimbursement of airfare, shipping etc. Will the airtickets be enough for reimbursement of airfare? Also, while shipping stuff, what receipts are to be submitted meaning do we include the customs clearance also or will receipts from the shipping companies suffice.
Thanks in advance,
micky
R2I Relocation reimbursement receipts
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missionr2i
- Posts: 54
- Joined: Tue Jan 23, 2007 10:36 pm
R2I Relocation reimbursement receipts
Receipts of "everything" in original is necessary. Thats my experience (R2Ied just 2 months back). Collect and keep the receipts from Uhaul, walmart etc etc (where you might have bought locks, moving boxes etc). They are valid ones. You usually won't get customs receipt. So think of something else to compensate that amount.
Taxi fare: Very important. US taxis will give you a blank receipt. Get it extra also. (Remember the compensation I mentioned earlier)
Prefer to use pre-paid taxi in Indian Airport/Raiway stations. They will give you the receipt promptly.
Flight: Requires ALL the Boarding passes (counter foil) of all the passengers in original.
Transit food: Keep the receipts of all the expenditure including starbucks coffee at Hong Kong Airport. Thought its 2 dollars, it will be converted into rupees when the payment is made.
Hope this helps.
Taxi fare: Very important. US taxis will give you a blank receipt. Get it extra also. (Remember the compensation I mentioned earlier)
Prefer to use pre-paid taxi in Indian Airport/Raiway stations. They will give you the receipt promptly.
Flight: Requires ALL the Boarding passes (counter foil) of all the passengers in original.
Transit food: Keep the receipts of all the expenditure including starbucks coffee at Hong Kong Airport. Thought its 2 dollars, it will be converted into rupees when the payment is made.
Hope this helps.
R2I Relocation reimbursement receipts
Thanks missionr2i, it was indeed a very useful insight. I have never seen this discussed in this forum and your information helps. I usually tend to throw away the boarding passes as junk, now they have a price tag attached to it :)
Are you saying the taxi far from the home in US to the US airport is also reimbursable?
Micky
Are you saying the taxi far from the home in US to the US airport is also reimbursable?
Micky
R2I Relocation reimbursement receipts
Does the relocation expense also cover cover suitcases, bags etc. that may be required for the non-container stuff (i.e. personal luggage)?
Also in general, is the cost associated with breaking lease or cell phone contract reimbursable?
-- Thanks
Also in general, is the cost associated with breaking lease or cell phone contract reimbursable?
-- Thanks
R2I Relocation reimbursement receipts
In general your company will reimburse you on most things that they can get a tax break on from IRS. If the company doesn't you can claim income tax benefits when you file your returns. Most firms have a T&E policy. You can ask them about it.
By that policy - the luggage that you carry etc are not considered expenses. They are capital expenditures (since you still own them after moving to India).
Typical reimbursible but overlooked expenses are:
(a) Luggage trolley in airports
(b) Stay in hotel for the last week or so after you moved from home
(c) Food durng relocation
(d) Taxi receipts
(e) Commission paid to agents who facilitate move through customs (as long as it is for a service and carries a receipt - and not a bribe)
(f) Ticket costs for family members
(g) Insurance for transporting goods
(h) Laundry bills
For expenses below $25, you don't need to produce a receipt (your company may insist on it but IRS doesn't).
In general I am not a fan of inflating expenses. Most of the upper management travel and are aware of approximate taxi charges. For instance, I know it costs $45 to go from JFK to mid town - so will the person who pays the bill. In many firms, expense reports are more closely monitored than you think to check out the integrity of an employee.
Non-reimbursable
(a) Any duties that customs charges (again this is capital addition since you still own the same goods after you move to the new country with a higher apprisal value)
(b) Lost goods during transit (it was your fault for not insuring)
By that policy - the luggage that you carry etc are not considered expenses. They are capital expenditures (since you still own them after moving to India).
Typical reimbursible but overlooked expenses are:
(a) Luggage trolley in airports
(b) Stay in hotel for the last week or so after you moved from home
(c) Food durng relocation
(d) Taxi receipts
(e) Commission paid to agents who facilitate move through customs (as long as it is for a service and carries a receipt - and not a bribe)
(f) Ticket costs for family members
(g) Insurance for transporting goods
(h) Laundry bills
For expenses below $25, you don't need to produce a receipt (your company may insist on it but IRS doesn't).
In general I am not a fan of inflating expenses. Most of the upper management travel and are aware of approximate taxi charges. For instance, I know it costs $45 to go from JFK to mid town - so will the person who pays the bill. In many firms, expense reports are more closely monitored than you think to check out the integrity of an employee.
Non-reimbursable
(a) Any duties that customs charges (again this is capital addition since you still own the same goods after you move to the new country with a higher apprisal value)
(b) Lost goods during transit (it was your fault for not insuring)
R2I Relocation reimbursement receipts
r2mumbai;37155Does the relocation expense also cover cover suitcases, bags etc. that may be required for the non-container stuff (i.e. personal luggage)?
Also in general, is the cost associated with breaking lease or cell phone contract reimbursable?
-- Thanks
A friend of mine who relocated to usa from uk, got his loss on house sale reimbursed. That was during the falling house prices in the Uk in 1993.
R2I Relocation reimbursement receipts
Great thread. I am USC, and was thinking if it is advantageous for me to join in January 2011 instead of December 2010 from tax perspective.
TIA.
If I get lump sum relocation, is the amount taxable as income? If yes, I would guess that the amount becomes taxable in the year in which I receive the check, right?
If the company arranges travel, shipment, etc. or reimburses me for these expenses, is the amount taxable? If indeed the amount is taxable, then for which year will it be taxable? If I travel in Dec, and get reimbursed in Jan, will it be taxable in 2010 or 2011?
TIA.