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Make Money with Your Move! – Tax Deduction Tips

South Florida Moving Tips- how to claim your moving expenses on your taxes.

Under certain conditions, your move may be covered as a tax-deductible expense by the IRS. While there are certain qualifications, you can make money if your move meets the guidelines as set out by the federal government.

The good news is that the moving deduction does not need to be itemized in terms of the expenses incurred. Plus, there is no limit to the amount you can deduct if it meets the requirements. However, the move does have to meet the standards as set out by the Internal Revenue Service.

Job-Related

The move must be related to your job in some fashion so that it qualifies for a tax-deduction. This means that you will need to start a new job and work a minimum of 39 weeks in the first year to qualify. An exception would be if you started working your new job before the rest of your family moved to the new location. The reasons may include your child finishing up school in the old location or a spouse receiving medical attention. In any event, if you meet these special circumstances, then you can count the time you spent at your new job before the rest of your family moved.

Distance

First and foremost, unless your new place of employment is at least 50 miles away from the old one, then you cannot use your move to qualify as a tax-deduction. Plus, you must keep in mind that it’s the location of your home and not just the job. For example, if you lived 10 miles away from your old job, your new job must be at least 60 miles away from your old home to qualify for the deduction.

This means that you do not necessarily have to move 50 miles to a new home, but that the relationship between your old and new job location must be at least that distance relative to your old home. If you are in the US military, you can claim moving expenses regardless of the distance or employment concerns.

Additional Expenses

Any expense that is a necessary part of your move may be included in your tax-deduction. Such expenses include, but are not limited to the following;

  • Gas
  • Renting Trucks
  • Short Term Storage
  • Purchasing Boxes
  • Lodging or Hotel for Long Moves
  • Parking Fees and Tolls

Any reasonable transportation cost should be included in your deduction and should be added to the total amount.

Form 3903

This is the form you will need to complete if you are deducting moving expenses from your taxes. The form itself is laid out well so you can organize your deductions easily.

  • Line 1: Shipping & Storage
  • Line 2: Travel, Gas, & Lodging
  • Line 4: Reimbursement from Employer

* Keep in mind that if the reimbursement from your employer exceeds the total amount of your expenses, then you cannot deduct it from your taxes. Plus, the amount that the employer overpaid in terms of reimbursement must be considered taxable income.

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