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Is Moving a Tax Write Off?

Although tax season has come and gone, it will return faster than you know it. Luckily, All My Sons Moving & Storage of Fort Myers is here to ease the process, so that tax season doesn't sneak up on you.

Moving and doing your taxes are two stressful things that everyone has to do at some point in time. However, there are experts available to ease both processes. All My Sons Moving & Storage experts are always available to make your move enjoyable and stress free. But wouldn't it be a plus if you could deduct your moving expenses as well?

If you are planning on moving to Fort Myers, you may want to know whether your move can be used as a tax write off or not. Unfortunately, when doing your taxes, there are a lot of guidelines the Internal Revenue Service requires. And when it comes to moving, the IRS has strict rules on who can claim moving expenses on their tax return.

There are three requirements that one must meet in order to claim moving expenses.

  1. Are you moving because of work?

If you are looking to claim your moving expenses, your move must be closely related to your work start date. Your move must be closely related in time. Meaning, if you move within a year of the date that you started working at your new job, you could possibly use your move as a tax write-off. You must also meet a work proximity requirement; this takes into account the distance from your job to your new home. The distance between both must be less than the distance between your previous home and job.

2.  Distance Test Standards

In order to validate taxing your moving expenses, you must meet the distance test. To pass the distance test your new job and residence must be a minimum of 50 miles farther than your old home and job. Easily put, if you are moving 50 miles away from your current address, and your new address will make it so that you are closer to work, you meet the requirement. The purpose of this is that you are moving to another city, in order to conserve on gas and energy with a shorter commute to work. Shorter commute to work, coupled with conserving, equals tax write-off for being green!

3.  Time test

The last requirement to meet in order to deduct your moving expenses is the time test. If you are an employee, you must work full-time, for a minimum of 39 weeks during the first year after you move. If you are self-employed you must meet an additional requirement; which is a total of 78 full-time weeks, within the first two years after arriving in the general area of your new job.

After you review the above requirements, if you are still unsure of which moving expenses you can use as a write-off, All My Sons Moving & Storage recommends that you seek expert advice from a local tax accountant. Whether you need help for taxes or moving, it is never a bad idea to seek help to make sure that you are getting your money’s worth.

As a reminder, when you start spending money on your upcoming move, make sure to keep all of your receipts. If you decide to use a tax accountant by the end of your move and the end of the fiscal year, having your receipts will make deducting your moving expenses a quick and easier process!