Every situation has a silver lining, even relocation for your job. Moving can be exciting, but there are a lot of logistics and things to take care of. One way to ease the pain is to remember that come tax season you will qualify for deductible moving expenses.
Pass This Test
The IRS is very strict about qualifying moves for a tax deduction. Before you can claim moving expenses for tax deductions, you need to meet these three requirements.
Start of work- You must move within one year of starting your new job.
The distance test- Your new place of work is 50 miles farther than the location of your previous job to your old home. If you worked from home, then your new job must be at least 50 miles away from your hold home.
The time test- You must work full time for 39 weeks within the 12 months following your move.
Expenses That Are Tax Deductible
Once you have qualified to claim moving expenses, you can begin to add them up. These are the costs you can take advantage of:
Travel costs- such as transportation and lodging. Transportation can include gas or the cost of shipping your car as well as plane or train tickets.
Packing costs- such as movers, boxes, and even transporting family pets. You can also deduct the cost of storage units.
Utility fees- can be deducted when connecting or disconnecting either at your old or home or the new one.
Once the movers have left, and you’ve unpacked your boxes you can begin to relax. You did it! Now don’t forget to tuck away important receipts from your move to lighten the burden of tax season.
If you’re moving to or from Boise and you want a team with experience, call us today!