Deducting Moving Expenses
Did you know that if you move, you might be eligible to deduct your moving expenses? The Fort Lauderdale movers at All My Sons Moving & Storage are going to tell you how you can deduct moving expenses. Read on to find out how!
To be able to write off your relocation costs, there are three requirements you must meet. Your move must be job-related and you must pass two tests- time and distance. To meet the distance test, the distance from your old house to your new workplace must be at least 50 miles farther from your previous residence and your last workplace. To meet the time test, you must work in your new area for at least 39 weeks during the first year after you arrive in that new area. Your moving expenses must be incurred within one year of starting at your new job to be deductible.
According to the Fort Lauderdale movers, generally, you can deduct moving expenses when you move yourself, your family and all your belongings. The cost of DIY moving trucks, gas, packing supplies, moving insurance, travel expenses and storage for up to 30 days after your stuff is moved can all be deductions on your tax return. Even though travel expenses will count as deductions, any cost of meals will not be deducted. Other things that won’t be deducted are: expenses of buying or renting a home at your new location and any expenses for which your employer reimburses you.
When you file your tax return, you do not have to itemize your deductions to claim moving expenses. Moving expenses do not count as an itemized deduction because they are an adjustment to your income. They also reduce your adjusted gross income, so moving expenses might help qualify for other tax benefits that are limited at higher income levels.