If you are moving because you’ve accepted a new job in another city or you just relocate to another position in your company, you’ll be able to deduct many of the expenses on your tax form. However, distance is critical as to whether or not you can deduct your moving expenses for tax purposes. Your new home and job must be at least fifty miles away from your old home and job.
You can deduct a certain amount per mile traveled if you drive your personal vehicle to your new home. All your vehicular expenditures are also tax deductible, so be sure to keep all the receipts. In the course of your travels you may get credit for lodging and meals. If you ship your vehicle and choose to fly, you can also deduct the cost of transporting your vehicle plus the cost of airfare.
Should you decide to hire a moving company, Uncle Sam allows you to deduct the expenses you incur in loading, unloading, pack and unpacking, and the cost of lodging and meals while you’re waiting for your goods to arrive. Unfortunately, you cannot deduct any lodging and meal expenses after you have unloaded your household goods in your new home.
If you do not need your items immediately, several moving companies will offer you a discount if you store your items for a short period of time, while they wait for additional loads going to the same area. So, you can deduct the storage expense on your tax return.
Many employers reimburse some or all of their employees’ relocations expenses. As this may be credited to you as income, check with your tax preparer before you claim it on your taxes. However, if your expenses exceed the amount your employer allows, you may deduct those costs. This is where it’s critical to keep all receipts and document everything possible!
Remember, all the expenditure that exceed your employer’s allowance (meals, lodging, tolls, fuel, airline fares, moving charges, extra charges from moving companies, etc.) can all be tax deductible. But if you don’t have documentation in the form of receipts, you’re out of luck!
For you to be able to deduct your moving expenses for tax purposes, the IRS requires that you stay with your current employer for at least 39 weeks after you have moved. And all moving expenses must have occurred within twelve months after you first report to work at your new location.
Furthermore, tearing down and reassembling products such as hot tubs, jacuzzis, and ground pools is tax deductible. You can even deduct the cost of tipping the moving company’s driver!
So, when you are in the middle of checking out moving companies and doing all of your packing, don’t forget to also look into the impact that moving will have on your taxes. Depending on your level of preparation, you can take a big hit or realize a sizeable deduction!
Don’t fall victim to a rogue mover. Do your homework by requesting your free no-obligation moving company estimate from well-respected movers. Get help as to what type of calculate moving expenses to write-off on your tax returns. Compare their services and save up to 35% on your move.
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