How to Make Your Work-Related Moving Expenses Less Taxing (Literally!)
Moving can be an expensive proposition, and a work-related relocation is no exception. But the IRSdoes offer a little bit of help in the form of a tax deduction for work-related moves, under certain conditions moving expenses can be deducted: Do a little homework, and consult your CPA to determine how to make your work-related moving expenses less taxing (Literally!).
You must pass the 50-Mile Test (the distance between your new primary job and your home must be at least 50 miles more than your old commute was). A great tax deduction and often under-reported.
You must be employed full-time in the area of your new job location for at least 39 weeks during the 12 months after you move. (If you own your own business, the time of employment required is extended to 78 weeks within 24 months after you move.)
The tax deduction applies whether the job you move for is a new one, or is for your current employer. If you’re married, only one spouse needs to meet the Time/Distance requirements to qualify for the deductions.
Provided you meet the Time and Distance requirements, you can deduct “Reasonable” expenses, including the following:
If your employer happens to be generous, any expenses they pay for are not applicable unless they are added to your regular salary, but you must be careful to claim only the allowable deductions. You are also responsible for paying taxes on any money you receive from your employer for moving expenses that aren’t eligible for the deduction, like meals and temporary housing.
This is not an easy deduction to qualify for, but if you do, it is an “Above-the-Line” tax deduction (not itemized), and you would use IRS Form 3903 (Moving Expenses) to claim it. As with any tax-related issue, you should always seek the advice of a duly-licensed tax professional to make sure you meet the criteria.
To learn more about the work-related moving expenses & allowable tax deduction, please visit applicable page on the IRS website, http://www.irs.gov/taxtopics/tc455.html. Thanks to Chuck Myers of the McClatchy Tribune News Service for this information on how to make your work-related move a little less taxing, and please contact us to learn more about how we can help make the rest of your move smooth and worry-free!
- IRS Moving Expense Deductions (turbotax.intuit.com)