Moving expenses are tax deductible

Moving Expenses are tax deductible:

If you are moving or have already moved to a new location for employment you may be eligible for some nice tax breaks. Be sure to keep legible records and save your receipts. Moving expenses and deductions have changed a lot over the years so you will need to seek advice from your tax professional or you can read publication 521, IRS moving expenses to know what is tax deductible and how to claim it.

Household goods and personal effects

You can deduct the cost of movers, moving services, packing, crating, and transporting your household items and personal effects and belongings of the members of your household. “Personal effects” includes, but are not limited to, movable personal property that the tax payer owns and frequently uses.

Deductible moving expenses

Storage expenses:

You may include the cost of temporary storing and insuring household belongings and personal effects. It needs to be within any period of 30 consecutive days after your things are moved from your previous home and before they are delivered to your new home.

Travel expenses:

You may deduct the cost of transportation for yourself and the members of your household while you are traveling directly from your previous to your new destination. This also includes misc. expenses for the day you arrive. You may claim flights, truck rental, fuel, moving labor, parking fees, toll roads, etc.  Claiming mileage is 27 cents per mile as of June 30, 2008

The members of your household do not have to travel together or at the same time. However, you can only deduct expenses for one trip per person.

You cannot deduct the cost of moving furniture you buy on the way to your new home.

Lodging expenses:

You may include any lodging expenses you had in the area of your previous home within one day after you could no longer live in your former home such as, your furniture had been moved. Lodging can be claimed for the duration of travel to your new home. You may also claim the day you arrive at your destination new home.

Typical deductions:

You may deduct the costs of disconnecting or connecting utilities required when you are moving.

You may deduct the cost of shipping your vehicle and moving your household pets from your previous home to your new home. You may also deduct the cost of moving or moving services for your items from a place other than your previous home but it’s limited to the amount it would have cost to move them items from your previous home.

Work Related moving:

Not all moves are deductible. You will need to meet certain criteria and rules. It doesn’t matter if it is “work related”, as long as you have a full time job within 13 weeks at the new location. It will not matter if you were transferred by your employer or you accepted a brand new job.

Qualified moving expenses are treated as an adjustment to your income. This means that you can deduct them whether or not you itemize deductions. You’ll need file Form 1040 (the long form) and attach IRS form 3903.

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