Is Moving Tax Deductible?
Are you planning a move this year or have you already moved from one home to another? Well if you have, you may be wondering if you can deduct the costs of moving from your taxes this year. When it is time to do taxes, everyone looks to find the most deductions to reduce their owed amount to the government or to increase the amount they may receive back on their tax return. While not everyone that moves will qualify to receive some sort of deduction, the good news is that some individuals and families will! The deductions can reduce the amount you owe or be included in your return.
Did you recently move from one area to another for your job? If so, then according to the Internal Revenue Service (IRS), you can deduct the costs of moving from your taxes. The IRS has a test on their website that will let you know if you qualify for these deductions based on the amount of time that has passed since you moved, if the move was directly related to a changed or new job location, and the distance involved in the move.
Generally people that move longer distances will qualify for a larger deduction. The minimum distance from the old place of employment to the new location (to qualify for a tax deduction) must be 50 miles. This is not 50 miles from your home, but 50 miles further from the old place of employment. You will also need to meet a minimum number of weeks as an employee in the new area. The time needed is 39 weeks at the new location out of the previous 12 months. If you made your move close to time to file your taxes, you may need to wait to claim your expenses.
The IRS has forms available on their website for moving expenses. These expenses do not need to be itemized. Expenses can include the actual transport of your personal belongings and work related items to your new location. If you rented a moving van/truck or if you needed to pay a moving company, these expenses can be deducted. The form you will need to complete is the 3903, Moving Expenses, and you will then need to attach this to the 1040 form before submitting your taxes.
Special rules apply for the men and women that serve in the armed forces. If you are a member of the military and need to find out if your move will qualify for tax deductions, the IRS offers a publication called 521 ‘Moving Expenses’ with a section called ‘Members of the Armed Forces’. This form can be downloaded from the IRS website or obtained by calling their toll free number : 800-829-3676
While moving can be expensive, it is nice to know that often you may be able to recuperate certain expenses associated with a long distance relocation.
For more information, be sure to visit the IRS website and follow their easy direction on their ‘Tax Trails’ page. It can help you decide if your move will qualify. Always consult a licensed accountant when preparing taxes.
