Get Tax Breaks from your Move

The end of tax season is quickly approaching and for those who choose to do their taxes at the last minute, April 17th marks the last day you will be able to file your returns. When the time comes to sit with your accountant, make sure to inform them that you have recently moved. Why? What most people don’t know is that you can deduct your moving expenses for a tax break.

If you’ve moved last year, you can deduct your moving expenses as it relates to a new or relocation of a job.

You qualify for moving expense deduction if:

    1. You have relocated and your new job is at least 50 miles farther from your former home
I.e. if you previously lived 5 miles from your job, your new job must be at least 55 miles from your old home
  1. You had no job and your new job is at least 50 miles from your former home
  2. You did or will work full time as an employee for at least 39 weeks in the first 12 months after you arrived in the new area

You can also deduct reasonable expenses like:

  1. Traveling expenses (lodging excluding meals)
  2. Moving your household goods (up to 30 consecutive days of in-transit storage)

Your accountant will inform you that there is no need to itemize deductions to deduct moving expenses. Simply complete and transfer 3903 Moving Expenses to Long Form 1040.

You cannot deduct moving expenses if your employer reimburses you for some if not all costs.  If you have deducted moving expenses but didn’t qualify to deduct expenses, you must file an amended tax return or include moving expenses in your income next year.

Moving can be expensive and it’s always refreshing to know that Uncle Sam is willing to give you a tax break during this change in your life. Need additional information? Speak with your accountant or visit IRS.gov to find out if you qualify for this specific deduction.



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