is a relocation assistance taxable in PA? What percentage do i have to deduct?

Question

Sorry for any errors I am a German who will immigrate to the US!

Answer 1

The United States has a federal income tax, a Pennsylvania state income tax and possibly city income taxes. The United States Internal Revenue Service (the "IRS") is the federal tax collection agency with whom you will file your federal income tax return. I am not from PA, so I will tell you the U.S. federal rules which you can find at the link below and which most states and cities follow.

In general, the movement of household goods and personal effects, storage expenses and travel expenses to your new location are either (1) excludable from your taxable income if paid directly by your new employer or (2) deductible by you paid by you or paid by your new employer and reported as income to you by your new employer.

Some expenses are not excludable or deductible. For example, temporary living expenses once you arrive that are paid by your new employer are taxable income to you.

Any cash payments to you for relocation that are not reimbursements for deductible moving expenses are taxable and your new employer should withhold the tax. Payments by you out of your own funds for deductible moving expenses above are deductible.

Answer 2

Relocation assistance wouldn't be taxable in PA.

Your question did not have errors - is much more literate than many others on this site.

Welcome to the US, and to Pennsylvania.

Answer 3

the reality you used the term "taxable according to diem" exhibits the reimbursement isn't made below an to blame plan, as a result the money is taxable. Your business enterprise no longer purely "can" deduct tax from the charge, they're required to by ability of regulation. not sure the place you're getting the "retax" element. you will possibly desire to have had your proportion of FICA withheld, then your business enterprise pays their proportion. except they pay you the quantity on type 1099-MISC, that's unsuitable.