Any time you move the expenses that crop up in doing so have a place on your tax forms. A lot of moving expenses are deductible, which means less taxable income once everything is calculated. Every year tax regulations and laws may change, so taxes in relation to moving may also change. This is why it is important that you stay on top of tax information. If you have your taxes prepared for you, either through a company or with the aid of tax software, then the work is already done for you. Still, it can’t hurt to keep yourself apprised of what might be deductible in case you move.
Moving is more than just paying for the van and the help to get your possessions from point A to point B. Because your new home may be far away, you may require lodging on the way there. Hotel expenses are items that can be deductible, but at the same time, any meals you eat on the way are not. If you have to store your household items somewhere before making the move or after moving, this can also qualify. This only lasts up to 30 days. After this point in time, the extra amount you pay does not count. And of course, the cost of moving your household items, such as the truck, boxes, and any hired hands that do the packing, loading, and driving.
There are two main qualifications you must meet in order for your move to be deductible at all. The first is distance. Your new job has to be 50 miles or more from your old home than your old job was. In the case that you were unemployed at the time of your move, then the job you get after moving has to be at least 50 miles from where your old home was. Your move does not have to be work related in order for your move to be deductible, but the IRS wants to be sure you paid the expenses in the same year you start your job.
The other qualification you must meet is the amount of time it takes between your move and your new job. Within 13 weeks of moving, you should be working at your new job, full-time. After getting the job, you have to work for at least 39 weeks within the year after your move. In relation to the job, you can either be transferred by your current employer or simply start a new job once you move.
These are the basics regarding moving and taxes, the details may change from year to year. Some moves may be subject to certain exceptions such as moving to a foreign country or if you are in the military. In cases such as those, you may have to speak to a tax professional who knows the ins and outs of special condition moving.
Overall, as long as you pay attention and keep receipts for use on your taxes later, you may find yourself saving a nice sum of money because of your move.
