Q&A: Are education assistance, housing, and vehicle benefits taxable income?

Posted by Don W on October 25, 2010 under Expatriate Taxes, First Time Filing as an Expat, Relocation and Taxes

Q: I’m getting transferred to the UAE and I can get up to $13,000 USD for education assistance for my elementary school daughter. Is this taxable income? What about housing and company car? I would appreciate your assistance.

A: Yes, the money would be included in your gross foreign income.  The same applies to housing and vehicle benefits. The easiest way to think about it is that anything that you would have had to pay with your own cash is taxable.

Q&A: How do we handle residency when we’ve left our US home to foreclosure?

Posted by Don W on October 10, 2010 under Expatriate Taxes, Relocation and Taxes

Q: In July 2009, we “walked away” from our Ohio home, deciding to leave it to foreclosure. As we are officially homeowners in the state of Ohio, until such time as foreclosure occurs, does Ohio still consider us as residents and subject to Ohio state taxes?

A: Residency, especially if you don’t have any economic ties to the state, is up to you. If you don’t intend to return to Michigan then you can renounce your statehood.