Moving and Tax Deductions
These days, it is never a bad idea to reach out to your accountant or conduct a little research to see what can and cannot be deducted on your upcoming taxes! It turns out that, in many situations, moving may qualify as a deductible expense. These guidelines below may help determine whether or not your move may factor into your taxes. Keep in mind that we are the moving pros, and these guidelines may or may not apply to every situation!
Oftentimes, a move will be due to a new job opportunity or a position relocation. If your move is scheduled near the start date of a new position, it may be eligible to be used as a tax deduction. Typically, restrictions based on full-time status, distance, and also the amount of time following your move that you are employed all factor into the tax deduction eligibility.
Items such as lodging during your move, temporary moving arrangements, transportation of your items, cars, and pets, in addition to packing, storing and unpacking costs, can all factor into your deduction. If you are planning a move, be sure to keep an organized list of expenses so that you are able to review when it is tax time! Certain things will not qualify for a deduction, such as any meals related to your move, your change of address, subsequent license or ID updates, any vehicle registration changes, and nothing related to the price of your new residence. If your employer reimburses you for any expenses related to your move, it is important to keep track of that as well. On your tax return it will count as income!
2012 taxes are already in the books for most of us, and if you didn’t know that the potential moving and tax deductions exist, or if you haven’t met the requirements, you can either file an amendment or speak with your tax doer about including them on next year’s taxes.