Moving Expenses when Working for a Charity?

[PDAllen]

Client took a position with a qualified 501(c)3 working overseas (Africa). There is no salary, but the 501(c)3 provides housing and a food stipend. Client took the position as a career move/resume builder. Plans to be in Africa for 18 months. Possible she will move into a paid position sometime during 2016.

Client paid for transportation to Africa out of pocket, not reimbursed. Does this qualify as an unreimbursed moving expense for work?

[ATSMAN]

Client took a position with a qualified 501(c)3 working overseas (Africa). There is no salary, but the 501(c)3 provides housing and a food stipend. Client took the position as a career move/resume builder. Plans to be in Africa for 18 months. Possible she will move into a paid position sometime during 2016.

Client paid for transportation to Africa out of pocket, not reimbursed. Does this qualify as an unreimbursed moving expense for work?

I don't think so! Because even if she got paid in the foreign country and elected to exclude that income there would be do earned income for purposes of moving expense deduction.

[PDAllen]

MFJ, husband has income.

[ATSMAN]

MFJ, husband has income.

Please refer to Pub 54

Moving expenses allocable to excluded foreign income. If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. You may also be able to claim a foreign housing exclusion or deduction. If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income.

Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. You can get the publication from most U.S. embassies and consulates, or see How To Get Tax Help at the end of this publication.

[PDAllen]

Bueno, thanks.

[Gene V]

Charity

Client took a position with a qualified 501(c)3 working overseas (Africa). There is no salary, but the 501(c)3 provides housing and a food stipend. Client took the position as a career move/resume builder. Plans to be in Africa for 18 months. Possible she will move into a paid position sometime during 2016.

Client paid for transportation to Africa out of pocket, not reimbursed. Does this qualify as an unreimbursed moving expense for work?

I would consider putting the travel expense under Charitable Contributions. see TTB 4-16 or Pub. 526 under Travel

[FEDUKE404]

Is there truly any employment at this stage?

I would have some concern over whether the fellow has any true "income" that would therefore substantiate/justify any allowable (job-related!) moving expenses.

This is a totally separate issue from if he jumped though all of those required hoops and then had excludable foreign income.

Two separate issues to resolve.

If the "income" (either type) never materializes, I think using some expenses as qualifying charitable deductions might be a path worth pursuing.

Certainly there are some missionary-type agencies in the US that could offer some tax insight?

FE

[ATSMAN]

I would have some concern over whether the fellow has any true "income" that would therefore substantiate/justify any allowable (job-related!) moving expenses.

This is a totally separate issue from if he jumped though all of those required hoops and then had excludable foreign income.

Two separate issues to resolve.

If the "income" (either type) never materializes, I think using some expenses as qualifying charitable deductions might be a path worth pursuing.

Certainly there are some missionary-type agencies in the US that could offer some tax insight?

FE

My only concern about deducting travel expenses as charitable contributions (non cash) would be A) is this a qualified charity 501(c)(3) and B) the work is in a foreign country.

I had a taxpayer wanting to deduct contributions to a foreign charity helping Syrian kids. Looked up that name on the list of approved charities and it was not there.

I think further research and perhaps any court case involving this matter is warranted!

[FEDUKE404]

Back to original question

My only concern about deducting travel expenses as charitable contributions (non cash) would be A) is this a qualified charity 501(c)(3) and B) the work is in a foreign country.

I had a taxpayer wanting to deduct contributions to a foreign charity helping Syrian kids. Looked up that name on the list of approved charities and it was not there.

I think further research and perhaps any court case involving this matter is warranted!

Correct.

But the original post was concerning claiming moving expenses "for work."

FE

[taxea]

this is not a 2106 employee type expense. It is a charity contribution if the travel qualifies for a donation. If the husband did not make the move and does not work for the charity then none of it is moving expenses.

[PDAllen]

Client just notified me she will start drawing a salary in April. She made the move in December. This would appear to meet the time requirement for starting work within 1 year of moving.

The charity is a 501(c)3. They are renters and probably won't itemize, so I am trying to squeeze some value out of these expenses for them - within the law, of course.

This issue is new and strange to me. I appreciate the help.

[taxea]

I would not deduct it if she had no income from the charity in 2015 since that was when the move was made and there is no proof that she will receive an income. Unless you have a copy of a contract that specifically states she will be paid.