Moving a house can be an expensive affair as it takes a toll on you both physically and financially. Moving the contents of a 3-4 bedroom house from NY to CA can cost thousands of dollars when you use a professional full service moving company and that can be quite an expense for anybody. If you are one of the lucky ones being relocated by your company to a new location, your expenses will be covered by the company itself. However, if you have to pay for this move yourself, it could take a big hit on your wallet.
Well, we have some good news for you! YOUR MOVE COULD BE TAX DEDUCTIBLE!
According to the Publication 521 by the Internal Revenue Service (IRS), a person can claim returns on the moving expenses incurred while relocating to a new home. However, there are some qualifying guidelines that need to be met. Claims can only be made if your move meets the following criteria:
Your move is closely related to the start of work. What this means is that your move must be in close proximity to the start of your work at the new job, both in time and place. With reference to time, generally you can deduct your moving expenses if they occur within the 1 year from the date you first reported to work at the new location.
Your move meets the distance test. By the distance test we mean that your new job location must be at least 50 miles farther from your former home than your old job was. In easier words, if you have to travel over 50 miles to get to your new job from your current residence, your move to a new house can be claimed on the return
Your move meets the time test. To meet the time test you must work full time at least 39 weeks during the first 12 months after you arrive in the general area of you new job location. If you are self employed, you must work for a total of 78 weeks for the first 24 months.
If you meet all these criteria, then congratulations, you may deduct all the moving expenses incurred on your tax return. If you have further questions or are still confused about whether your move qualifies for a claim, please refer to the Publication 521 article on IRS.gov.
Now that you have an idea about if you can claim your moving expenses or not, you can get some free moving estimates from our qualified moving companies.