COVID-19 - A Case for Action #8 Choose your Mobility Tax Provider Wisely

This is part of a special Global Mobility Tax client alert series - sharing stories and situations where we have provided practical mobility solutions.

July 15, 2020

Action #8 Choose your Mobility Tax Provider Wisely

Taxpayer permanently relocated to another country and was responsible for their own taxes. His relocation expenses became taxable and a personal accountant prepared the Tax Returns and Tax Equalization Statement which resulted in the company owning him $90K.

ACTION: After review of equalization statement and residency positions taken on the state tax return, GMT noted a few items were incorrect and determined that taxpayer could break California tax residency. The tax equalization statement and state tax return were revised accordingly.

IMPACT: The income tax due to the State of California was significantly reduced and both company and taxpayer saved money. The returns and tax equalization statement were also now prepared correctly.

SAVINGS: The company saved a significant amount of money, $68,000, by reducing the amount owed back to the taxpayer. Breaking California State residency, lowered the tax liability resulting in a larger state tax refund due back to the taxpayer of $36,000.

We are here to provide you and your program with practical solutions, tax planning and optimization. 

How can we help you?

The website uses cookies to provide necessary site functionality and improve your online experience. By using this website, you agree to the use of cookies as outlined in Global Mobility Tax's privacy statement.