Moving this summer? Tips to help you deduct the expenses.Moving this summer? Tips to help you deduct the expenses. https://rockcreekcg.com/wp-content/uploads/2017/06/imagesSNS07I80.jpg 275 183 Rock Creek Consulting Group Rock Creek Consulting Group https://secure.gravatar.com/avatar/973a7b183816ab690817ef5b070658aa?s=96&d=mm&r=g
- Rock Creek Consulting Group
- no comments
Summer is here! When I think of summer my head fills with visions of backyard barbecues, swimming, long hot days, and of course… moving. By far, summertime is the busiest time of year to move and there are lots of reasons why – beautiful weather, overall good time to sell your home, parents with kids move in the summer so the kids can start their new school in the fall, perfect time for garage sales, need I say more? The list goes on and on.
Let’s face it, moving can be expensive but you may be able to recoup the costs. You don’t even have to itemize in order to take the deduction. It’s an “above the line” deduction which means it reduces your taxable income dollar for dollar. If you are relocating for work, you may be able save a lot of money by deducting your moving expenses. Here’s a few tips on how you can save money on your move– just remember to keep your receipts!
- Of course, Uncle Sam has rules about who may qualify for the deduction. It’s not automatic, but if you are moving for work and your new job is at least 50 miles farther from the distance your old home was from your old work and your new job is a full time job and you work at least 39 weeks out of 12 months then you most likely qualify! Of course, with taxation, it’s not that black and white but that’s the general rule of thumb.
- Any costs associated with a moving company, packing supplies, moving insurance, hiring help, travel expenses, and storage may all be deductible. Lodging expenses are limited but you may be able to deduct something for it so keep your receipts!
- Your meals are not deductible so watch out. Unfortunately, Uncle Sam does not let you deduct any expenses for those meals.
- If your employer reimburses you then you should keep track of what they reimburse you for. Any reimbursed expense is not deductible – unless they included the reimbursement in your gross wages. If our W-2 includes the gross wages then you can take the deductions.
When in doubt keep all the receipts for any cost associated with your move. Your tax accountant can sort out the details and help you save money.
- Posted In:
- Newsletter Blog