Are Moving Expenses Tax Deductible?
Oh, taxes, the ever-present topic of conversation in every household.
Unless you have the luxury of an accountant that can help you find every last deduction when it is time to file, you are responsible for doing your taxes. A drawback to this is glancing over expenses that may qualify for a tax deduction.
Are moving expenses even tax deductible?
If you are moving for work purposes like relocation or for a completely new job, good news your moving expenses are tax deductible!
Federal law states that when moving is related to work, then any cost involved with moving can be deductible. There are some stipulations that come with this, though. You cannot be moving within the same city to receive the tax deduction – your new home must be no closer than 50 miles of your current home.
There is also a time test that states you must be working full time for at least 39 weeks of the year in order to get the deductions. Both of these tests are called the distance and the time test.
What expenses can be deducted?
Besides figuring out if an expense is even deductible, we all want to know what expenses are included.
If you have to travel while you are looking for a new place to live, these expenses can be deducted. When you are moving between your old home and new home, this can also be deducted. Travel expenses include gas, lodging, and airline costs that are involved with traveling to and from the old house and new house.
If for any reason you are needing to store your belongings in a moving storage unit, these costs are considered to be deductible. In this case, storage units are usually needed if you are downsizing, your house isn’t ready yet or you are living in temporary condition until you officially move into your new home.
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Moving expenses include hiring a moving company, packing supplies or renting a moving truck.
Depending on whether you are going to hire professional movers or do a do-it-yourself (DIY) move, there are a lot of costs to consider either way.
Each different moving company offers different packages, varying anywhere from residential to commercial packing and unpacking services. In a DIY move, renting trucks is a great approach for hauling furniture and improving your tax return.
As an added tip, make sure to keep track of all of your finances before, during, and after a move. It is better to learn that you don’t qualify for certain tax deductions than missing out on the opportunity to claim one.
About West Coast Moving & Storage
West Coast Moving & Storage has continued to provide professional moving services for residents and companies along the Pacific Northwest since 2002. Along with being certified and licensed in Oregon and Washington, we use state-of-the-art-equipment to protect you and your belongings from potential injuries and damages.
Contact us today for a free consultation and to get started on a smooth moving process.