Have you moved this year, or do you plan to move before the year is up? If you are doing so because of a job, you may be able to deduct some of your expenses on your upcoming tax return. Seattle CPA Alisa Na has all the information you need to get the most out of your move when tax season rolls around again.
There are many expenses related to travel that can be deducted on your taxes. Among these are expenses related to transportation and lodging, packing and shipping your belongings, connecting and disconnecting utilities, and insuring shipped items. You will not be able to deduct the cost of meals consumed in transit, the cost of your new home, expenses associated with selling an old home, or the cost of breaking a lease. If you are reimbursed for any moving expenses by your employer after having deducted them on your taxes, you may need to report this as income on your next return.
For a moving-related expense to qualify for a deduction, it must meet all three of the following requirements:
- The time of the move must be close to the time you start work. In general, any moving expenses you incur within a year of the date you are meant to start in your new job can be considered for tax deductions.
- Your new job must be significantly further away than your old job. The rule here is that the location of your new job must be at least fifty miles further from your old home than your old job was. So, for example, if your old job was a ten mile drive, your new job will need to be at least sixty miles away from your old home in order to justify the move.
- You must work at your new job for a certain amount of time. Following your move, you will need to work at least 39 weeks, full time, at your new job. If you are self-employed, you must work at least 78 weeks during the first two years at the new job site, full time. You can take a deduction on your taxes if you have not yet had time to complete this requirement, so long as you expect to complete it.
Should you require any further assistance with your taxes, please contact Alisa Na during normal business hours.