Can You Claim Hefty Deductions For Moving Because of Your Job?
Aazdak Alisimo
Moving is not something I nor most others even remotely enjoy. If you want to work, it is a fact of life these days. Fortunately, you can make that move and claim tax deductions if you meet a couple simple tests.
Death, taxes and moving. With me, it is a close call on which one I dislike more! Okay, death is definitely the winner, but moving is a close second. Unfortunately, we are all moving more and more due to a changing employment environment.
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.
Since we are talking taxes, nothing can be straightforward. Yep, you have to pass a few tests before claiming moving deductions. First up, your new job must be 50 miles more from your first home than your new place of employment. Confused?
Let's look at an example. Assume I work a my horrible job which is 9 miles from my home. I take my new wonderful job which is located 109 miles from my home and I have to move. Since the difference is 100 miles, I can claim moving deductions.
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.
What if you are self-employed? You can still claim deductions, but the time test is tweaked. You must comply with the test above and also work the same time period in the 12 months following the move.
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.
Given all this work, are the moving deductions worth it? Well, they can be. It depends on what you incur as costs. You can deduct all reasonable expenses such as truck rentals and travel costs from your old home to the new one.
Aazdak Alisimo writes about relocation issues such as http://www.movingcompaniesforyou.com/ moving companies, truck rentals and more at MovingCompaniesforyou.com. Click here to get your own http://www.uberarticles.com/home.php?id=25295&b=79 unique version of this article.
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