Many people, who move to a new city or state, do so because of their jobs. There are plenty of job-related reasons to move to a new house; shorter commute times, lower fuel cost, less wear-and-tear on your vehicle, etc. To make matters even more beneficial, many job-related moving expenses are deductible on your taxes! Here are a few useful tips for you to consider if you consider deducting your job-related moving expenses.
- If you intend to deduct your relocation service costs on your taxes, first and foremost; the moving services rendered are required to have been needed due to your job. Regardless of whether your job is a new job, first job, or if your employer relocated you to a branch in another city or state; if you moved for employment related reasons, you may qualify for moving expense tax deduction.
- Mileage does play a part in determining your qualification for deducting relocation costs. In order to be eligible for such deductions, the distance between your old home and your newplace of employment must be at least 50 miles more than the distance between your old home and your old place of employment. For example: if you used to drive 10 miles to work before you were relocated or found a new job, your commute from your old house to your new job must be at least 60 miles (the previous 10 mile commute plus 50 or moremiles.) Keep this in mind if you are considering a work-related move any time soon. Be sure that you meet these mileage requirements before filing!
- Finally, in order to satisfy the IRS’s requirements in the matter, you must be employed full-time for at least 39 weeks out of the 12-month period following your move. However; you are allowed to switch jobs as often as you’d like as long as you maintain the IRS’s requirements, so don’t think that you are trapped in your job assuming better job-opportunities arise for you in your new town.
Moving cost deduction is just one of many tax deductions for which you may qualify. Don’t neglect to explore all of your tax options; you could be cheating yourself out of a really rewarding tax return! Every little bit counts! |