Sweden: Tax in Sweden on Income from the US

Question

Hej,

During 2019, I've worked in Sweden for 9 months and temporarily in the US for < 3 months (during which I requested unpaid leave from my normal Swedish employment).

I am aware that I need to declare the income received abroad also in SE.
Here is my US income (roughly gross total of 41k$):

Gross Salary: 20k$ (of which withheld taxes ~7k$)
Gross "Benefits": 21k$ (of which withheld taxes ~7k$)

The "Benefits" (which now seem more like a curse) covered: relocation flights, relocation company fees, and an, apparently expensive as hell, temporary accommodation. The relocation company paid around 14k$ for these and grossed-up with 7k$ in taxes (which makes a total of approx. 21k$ gross).

I had no idea that those 21k$ would appear as part of my income. And I'm concerned because it seems like those will make my income fall in a higher taxation bracket; which implies that I will have to ADD TAXES over money that (I thought) I have never earned!

QUESTIONS:

Am I understanding correctly?

Is there any hope that I can get deductions for part of that money?

(For example, I heard of "Double Accommodation" and various deduction for "increased living expenses", but It's a little difficult for me to understand if those apply also in my case)
(At the same time, I don't want to over-pay!)

I would be very glad if somebody here has experience with these situations and can advise.

Jobjörn Folkesson · Answer

To begin with: you only have to pay higher taxes on the part of your income that exceeds the threshold for the tax bracket. This threshold is 490 700 SEK for the income year 2019. That is, if you have a taxable income of 500 000 SEK you pay "normal" tax on 490 700 SEK and the higher tax rate on the remaining 9 300 SEK. You don't provide your Swedish income, so I can't make a more specific calculation for you.

But also, yes, you have a right to several kinds of tax deductions (reducing your taxable income) when relocating for a new job. I am not a tax lawyer, but this is the relevant information page at Skatteverket: https://www.skatteverket.se/privat/etjansterochblanketter/svarpavanligafragor/avdrag/dubbelbosattning/vilkareglergallerforavdragfordubbelbosattningvidanstallningisverige.5.10010ec103545f243e80001831.html

For the first month, you may make deductions for "meals and small expenses". I am not exactly sure what "small expenses" means but maybe you can deduct the relocation flight? You should contact Skatteverket and ask them directly. You can also instead opt to deduct a standard amount per day, 762 SEK per day (for a month).

For the entire time (but at most two years) you may make a deduction for double accomodation. You must be able to, upon request, provide a receipt for the accomodation cost. But it looks like you should be able to deduct the entire accomodation expense without much hassle.

You may also make a deduction for travelling home once per week. I'm not sure the relocation flight home is covered, though.

Good luck and remember that you can always call or e-mail Skatteverket and ask them directly. You can be anonymous if you prefer.

Sweden: Tax in Sweden on Income from the US

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