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Article By: AazdakAlisimo
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Are You Eligible for Tax Deductions If You Move for a Job?
Moving is not something I nor most others even remotely enjoy. If you want to work, it is a fact of life these days. Fortunately, you can make that move and claim tax deductions if you meet a couple simple tests.
When one thinks of moving, it is usually to cringe. After getting your taxes done, it comes in close to going to the dentist on least favorable things to do. That being said, it is more and more of a necessity these days.
It used to be that you could take a job with a company and count on staying there for thirty or forty years. Those days are long gone as we all know. From downsizing to salary concerns, we all move because of employment reasons.
This change in society has not gone unnoticed by the government. In a shocking move, the powers that be have actually created tax dedutions for people who incur expenses moving to a new job. Well, at least most of them.
So, can you just claim deductions for your moving expenses? Of course not. We are talking about taxes, which means you have to pass tests. The first is you new job must be 50 miles further from your home than your last job. Huh?
When it comes to taxes, examples always help. I live 3 miles from my current job. I apply and get a better job in another city that is 180 miles away and move. Since my new job is 177 miles away, I pass the mileage test.
There is a second test as well. The time test. The time test requires you to work for at least 39 weeks during the 12 months immediately after your move. This more or less means 10 months out of the 12.
Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks.
There will be a natural temptation to claim moving deductions, particularly if you are close to passing the tests. Don't. The IRS closely watches how taxpayers claim new tax deductions, so you don't want to get audited.
Given all this work, are the moving deductions worth it? Well, they can be. It depends on what you incur as costs. You can deduct all reasonable expenses such as truck rentals and travel costs from your old home to the new one.
Article Source: ArticleZones.com
About the Author
Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com.
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