# Australia to USA - Living Away from Home Allowance



## ofurniss (Jul 11, 2011)

I am moving to the US for work with my Australian based company and will be staying as resident of Australia for tax purposes.

My company is looking at the Living Away from home Allowance to compensate me for added costs of living away from Australia.

Can anyone tell me if I have to declare the LAFHA amount to the IRS when doing my US tax?

If so I cant see the benefit of it as it will be tax free in Australia but then I pay the tax in US. 

HELP!

Thanks


----------



## Fatbrit (May 8, 2008)

ofurniss said:


> I am moving to the US for work with my Australian based company and will be staying as resident of Australia for tax purposes.


Wish you luck! Think the IRS might have other ideas, though.


----------



## Bevdeforges (Nov 16, 2007)

While it depends on a number of factors - how long you'll be in the US, etc. - I would make sure your employer includes some form of tax assistance in your package. I'm not sure the IRS recognizes the option for you to remain resident in Australia while working in the US, but your employer may well have better resources in the area of tax and legal assistance.

As far as reporting income to the IRS, you must report all income, and that includes any allowances related to living overseas. Again, ask your employer to look into this for you.
Cheers,
Bev


----------



## twostep (Apr 3, 2008)

During your stay in the US you will find a number of things where you "can't see the benefit". You live and earn your income in the US and you will have to file US tax returns for your overall income. IRS.gov is pretty good about responding to emails. You may want to ask your question there.


----------



## 133689 (Jul 14, 2011)

Hi,

Australia and the US have a tax treaty. This avoids double taxation if you are taxed as a US Citizen and then return to Australia or live in the US and are taxed as an Australian resident.

You won’t be taxed on your LAFHA and the key LAFHA reference gives a similar example. Do a google search for MT2030 and read Para 17.

You will therefore obtain the advantages LAFHA is designed for and you should confirm that your employer is aware of all the benefits of LAFHA for someone in your situation and you can see these at our web site on the LAFHA page.

Regards,

Ian

Ian Lindgren
CEO PayMe Australia


----------

