Save Your Receipts: Moving Expenses May Be Tax-Deductible

Save Your Receipts: Moving Expenses May Be Tax-Deductible

If you’re in the middle of planning a summertime move, tax season may be the last thing on your mind. But a little prudent record keeping now may result in savings later, as some moving expenses may be tax-deductible. We’re not financial professionals, so you’ll want to double check this information with your tax preparer or financial advisor.

Are You Moving for A New Job or Because Your Company Relocated?

Your moving expenses may be deductible. Generally, you have to move more than 50 miles in order to qualify, and start the new job within a year of your move date. Additionally, you’ll need to work full time at least 39 weeks at the new job in the first year.

Did You Move to Your Second or Vacation Home?

Sorry, but the IRS is not going to grant deductions to people who are moving from one property they own to another property they own. This can also apply if you’re moving into housing owned by a spouse or family member – make sure to check regulations carefully before you claim the deduction.

Did Your Employer Pay Some or All of Your Relocation Expenses?

If your employer paid a relocation allowance, you must claim this sum as income prior to taking any moving expenses you incurred. This minimizes your tax break, but does keep you from getting in trouble with the IRS!

Have You Changed Your Address with the Post Office?

A small but very important detail! Update the post office of your new address using the forms available online and at your local post office. You can also update the IRS of your new address by using form 8822.

Choose Reputable, Professional Tax Return Preparation After a Move

A move can include several events that impact your tax situation, including starting a new job, buying or selling a home, moving expenses and more. Invest in the best tax preparation assistance you can: it’s the smartest, safest way to maximize deductions and save money.