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13 Nov
The nature of employment these days is such that you often have to move from time to time. If you have gone this process recently, there is some good news for you. You just might be able to claim some tax deductions related to it.
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.
The simple fact is the old world days of working for one company in one town for thirty or forty years are long gone. Everyone changes jobs these days. In many cases, the optimal job you are looking for is often in another location.
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.
One test is never enough with the IRS. There is another test that requires you to work roughly ten months out of the twelve full time after the move before you can claim the deduction. The exact requirement is thirty-nine weeks in the 12 months.
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.
As with most new deductions, the IRS is sensitive to abuse. If you run the tests and don’t qualify for the deduction even though it is close, don’t make a claim. It could spark an audit, which really would be bad news.
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.
About the Author:
Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.

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