Are You Eligible for Tax Deductions If You Move for a Job?
The nature of employment these days is such that you often have to move from time to time. If you have gone this process recently, there is some good news for you. You just might be able to claim some tax deductions related to it.
The mere mention of the word moving sends a chill down my spine. It is my least favorite thing to do without a doubt. This is probably because I end up doing it more and more as do most of you for employment reasons.
Our grandparents would all be stunned to see how the job market works these days. Whereas the worked for one business for thirty or forty years, we work for a business for 3 or 4 and then move to some other job in some other location.
This change in society has not gone unnoticed by the government. In a shocking move, the powers that be have actually created tax dedutions for people who incur expenses moving to a new job. Well, at least most of them.
So, can you just claim deductions for your moving expenses? Of course not. We are talking about taxes, which means you have to pass tests. The first is you new job must be 50 miles further from your home than your last job. Huh?
When it comes to taxes, examples always help. I live 3 miles from my current job. I apply and get a better job in another city that is 180 miles away and move. Since my new job is 177 miles away, I pass the mileage test.
One test is never enought with taxes. You must also pass a time test that requires you to be employed full time in your new position for a miniimum of 39 weeks out fo the 48 immediately following your move.
Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks.
There will be a natural temptation to claim moving deductions, particularly if you are close to passing the tests. Don't. The IRS closely watches how taxpayers claim new tax deductions, so you don't want to get audited.
Okay, you passed the tests. What can you claim? Well, your reasonable moving expenses including mileage, truck rentals, and lodging. Oddly, you cannot claim meals while driving from your old home to the new one.
Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com. You can get a unique content version of this article.
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