Moving Expenses Tax Deduction
Sometimes Changing Places Can Pay with a Moving Expenses Tax Deduction
You may, under certain circumstances, deduct some moving expenses on your federal income tax return if you complete the appropriate forms. Though Arrow Moving and Storage cannot give you tax advice, we have prepared a summary of some of the issues you should consider about the tax implications of your move. Because laws change frequently, you should always consult the Internal Revenue Service or your personal tax advisor for the most current information about your particular situation
Do You Qualify?
If you are moving in order to start a new job or have been transferred to a new location in your current job, the IRS allows you a reasonable moving expenses tax deduction as an adjustment to gross income if certain conditions, including the following, are met: The change in job location would require you to commute at least 50 miles (one way) farther to work had you not moved. That 50 miles must be based on the shortest of the most commonly traveled routes. The move occurs within one year of the date you begin work at the new location. You work full time (for any employer) in the general vicinity of the new location for at least 39 weeks during the 12-month period following the move. If you are transferred, laid off or become disabled before the end of the 39-week period, you still may claim moving expenses. If you are self-employed, you must work full time for a total of at least 78 weeks during the 24 months immediately after you move.
If you meet the qualifications for a moving expenses tax deduction, the following types of expenses may be deductible if you moved with the United States or from a foreign country into U.S. territory. Packing and Transporting You can deduct the reasonable expenses of packing, crating and transporting your family’s personal effects from your former home to your new one. Moving expenses can also include the transportation of your automobile and pets and the cost of valuation and in-transit storage. For moves within the United States, the deduction of in-transit storage expenses is limited to the cost of 30 consecutive days of storage after your goods are picked up. Guidance about whether particular expenses are reasonable is available from the IRS. Travel You can deduct the cost of your personal, one-way transportation and lodging. The trip should be the shortest, most direct route available for the type of transportation selected. It is not necessary that all family members travel at the same time. However, the expenses for only one trip per person may be deducted. Additional information about particular expenses may be obtained from the IRS.
Moving Documents Checklist
You should keep records pertaining to your move in one place, and keep them for at least three years. Those records should include:
• Bill of Lading
• Additional Services Performed form
Travel Expense Receipts
• Personal transportation costs (air, bus or train fares, and/or automobile expenses)
IRS Tax Forms and Information
• W-2 Wage and Tax Statement (from employer)
• 4782 Employee Moving Expense Information (from employer)
• 1040 U.S. Individual Income Tax Return
• Schedule A – Itemized Deductions
• Schedule D – Capital Gains and Losses
• Form 3903 – Moving Expenses
• Publication 521 – Moving Expenses
• Publication 523 – Tax Information on Selling Your Home
• Publication 530 – Tax Information for Homeowners
• Publication 553 – Highlights of Tax Changes
Keep in mind that Arrow Moving and Storage cannot offer specific tax advice and any specific inquiries should be directed to a tax professional.