Moving? Can You Deduct the Expenses?
The tax write off is a term that holds as much mystery as gluten. What is it? How do you get one? What qualifies? Well, just as the dietary implications of gluten are best explained by a nutritionist or medical professional, what a tax deduction is and whether or not you qualify are questions best answered by tax professionals.
Whether youÃ¢â‚¬â„¢re hiring a moving company or using mobile storage pods, the tax professionals at Rosenfeld, Zweig and Donenberg Ltd. have broken down exactly when and how you can claim a tax deduction for moving expenses. It turns out that figuring out whether or not you qualify for moving deductions is actually much easier than figuring out what gluten actually is!
When Can I Deduct?
In short, if you want to claim a deduction for moving costs, you can only do so if you change jobs or switch positions. If youÃ¢â‚¬â„¢re eyeing that bigger house in the suburbs and think you can claim the cost of moving there, youÃ¢â‚¬â„¢d better have a new job as a reason for making the move. And even if you are changing jobs, the new position must be more than 50 miles from your current home for you to claim moving deductions. Also, as an employee, you must work for 39 weeks, full time, in the first 12 months at the new job or position. Simple, right?
What Can I Deduct?
Lastly, if you can claim moving deductions, remember, you canÃ¢â‚¬â„¢t claim everything. Hotel stays, attorney fees, meals and mileage for house hunting trips do not qualify. Basically, just the costs of transferring your belongings and travel to your new destination are what you are allowed to claim.
Like any tax issue, there are exceptions and fine print. If you have any questions, contact a tax professional and let them break down whether or not you qualify for moving deductions. Moving is stressful. So is starting a new job. If youÃ¢â‚¬â„¢re doing both, why not see if you can relieve some of that stress by saving some money!