If your job requires you to move, you may be eligible to take a tax deduction.
Advance Relocation Systems is dedicated to helping make your move as stress-free as possible.
Even better, this type of deduction is an “above the line” deduction that decreases your adjusted gross income and reduces your overall tax burden.
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Relocating can be expensive. Your budget may be tight when you are faced with moving fees for transportation and packing, reconnecting utilities, and possible storage fees. However, Uncle Sam may be able to reimburse you for some of these expenses if you meet certain criteria. If your job requires you to move, you may be eligible to take a tax deduction. Even better, this type of deduction is an “above the line” deduction that decreases your adjusted gross income and reduces your overall tax burden. Moving expenses can often be claimed even if you don’t itemize deductions.
The IRS requires that these criteria be met in order to deduct moving expenses:
- You incurred the moving expenses within one year of starting a new job or position.
- Your new position is at least 50 miles further away from your previous job.
- You will work 39 weeks during the first 12 months after your move, and you will work full time. If you are self employed, you must work 78 weeks during the first 24 months.
Many of the expenses associated with moving can be deducted if you qualify. Packing and transportation of belongings and one night’s lodging for you or your family can be deducted. Fees associated with cancelling or acquiring utilities can be included in the deduction, as can storage fees for up to 30 days.
Expenses that can NOT be deducted include:
- Expenses which are reimbursed by your company or employer
- Security deposits
- Fees for signing or breaking a lease
- Fees for new license plates or drivers licenses
Advance Relocation Systems is dedicated to helping make your move as stress-free as possible. We hope this information can be helpful. However, it does not include all aspects of federal tax law and is not intended as tax advice. Please see the IRS website (www.irs.gov) for more information on this topic.
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