Moving to a new home can be fun and costly. From the cost of hiring a professional moving company Texas or renting a van, before closing the cost of buying a home, moving accounts are raising. The good news is that if you move residences to start a new job, you can deduct moving expenses. The IRS and some state governments allow taxpayers to take a deduction of expenses if their course meets certain criteria. States that allow deduct moving expenses have their own criteria for doing so. You can check the income tax form in your state to see if a government deduction is available to you.
Qualification to deduct moving expenses to your federal incomeIn order to offset the deduction of federal income tax expenses, the IRS states that your step must meet three requirements:
- It should closely relate to the beginning of work. You can only apply for deducting moving expenses for one year from the moment you start work. This means that if you do not get close to work during the first 12 months of work, you will lose the opportunity to deduct moving expenses.
- Your new job would add at least 50 miles to you if you stay in your old home. For example, if your old job required you to move only 5 miles from your old home to your previous job, your transition to a new job should be at least 55 miles from your previous place of residence.
- After you move, you must work full time in your new job for at least 39 weeks in the first 12 months of work. If you are self-employed, you must work at least 78 weeks full time during the first 24 months of your new job.
Military personnelIf you are a member of the US military, and your turn was caused by a military order and a constant change of station, you do not need to meet all the requirements. You can easily deduct your moving expenses.
PensionersIf you are retiring to the United States after working abroad, you do not need to meet the time requirements. Your former place of work and your former home must have been outside the United States. If you already live in the United States, you retire, then move to another part of the US state and remain in retirement, you cannot claim a deduction for expenses.
SurvivorsIf you are a spouse or dependent on someone who worked outside the United States, and that person dies, you can usually deduct the costs of moving if you live with that person, and then go to the United States within six months after death.
What could you deduct?If you meet the requirements, you can deduct some expenses related to your movement, but not all. The IRS states that you can claim a deduction for reasonable expenses related to moving your household and personal items, as well as expenses related to traveling to your new home. Eligible costs may include:
- Transportation for yourself and your family members during travel
- Accommodation during your travel
- Packaging and delivery of your household goods
Here is what you cannot deduct:
- The cost of food while driving
- Any purchase price of your new home
- Cost of selling an old house or terminating a lease
- Any moving expenses that your new employer will pay you for