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Taxes on Relocation Expenses

  • Thread starter Thread starter teju_sanghavi
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teju_sanghavi

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What is the name of your state? New Jersey

Hi !!

I am moving from NJ to California for my first job, on my Optional Practical Training (F-1 visa) and to my surprise, my relocation allowance was taxed by as much as 50%.

I was under the impression that while on OPT status ie. F-1 visa, an individual is still considered a student and is taxed upto 10% of his income.

Would I be able to get the remaining amount at the end of the year when I file my tax returns ?

Do relocation expenses count as my regular income (for tax purposes) ?

Please note that the relocation expenses are NOT being paid for any specific moving expenses, but as a lump sum amount for all the involved charges.

Thank you.
 



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