Tax consideration for moving costs when moving for work from the USA to Germany.
Good day,
the following situation:
After several years of working abroad in the USA, my wife and I returned to Germany on 21.12.2020. My employer requires me to have my tax return for the year 2020 prepared through their appointed firm. I do not agree with the explanations provided by this firm and therefore would like to hear a second opinion.
1) Unlimited tax liability in Germany from 21.12.-31.12.2020: The firm states that I am unlimitedly tax liable in Germany from 21.12.2020 onwards, even though I only registered in Germany on 1.1.21. Also, my furniture was still not in Germany at that time. During the period from 21.12. - 31.12. I rented a vacation apartment due to Covid/quarantine. Is my employer's firm correct?
2) Are the costs of the vacation apartment considered moving expenses and can they be deducted as business expenses?
3) We moved with 2 cats. Are the costs for transportation and veterinary expenses for the EU health certificate considered moving expenses that can be deducted as business expenses?
4) My employer reimbursed all moving costs except for the vacation apartment and the costs for the cats. Can I still claim a lump sum for myself and my wife according to AUV? Or should it be clarified whether an itemized list of the above-mentioned costs would be better?
5) I also received a tax-free incidental cost lump sum of €2,500 from my employer to cover my own moving expenses. Does this mean that I cannot deduct any costs as business expenses up to this amount, or that I may not be able to claim a moving lump sum?
Please provide as detailed information as possible so that I can argue with my employer's firm. If your opinion differs from that of my employer's firm, what can I do?
