Has a new job prospect ever asked you to pick up and move? After celebrating your new job offer, you realize that you are not close enough to commute. You will have to pull up your stakes and find a new place to live in order to start employment. The cost and inconvenience of moving for a new job could actually be tax deductible. When tax time comes, moving expenses can qualify as write-offs.
Moving Expenses Can be Deducted
There are three points you need to meet in order to write-off your moving expenses on your taxes. First, the move must closely relate to the start of your new job. If you have to move within a year of starting your new position, that qualifies. Second, your new job must be at least 50 miles further from your old home than your previous job was. So, using the distance test, if you used to live two miles from work, your new job has to be at least 52 miles away to qualify. And finally, you will have to work full-time at your new position for at least 39 weeks after you move. If you are self-employed, it needs to be 78 weeks within the first two years.
What Can You Deduct?
Some examples of deductions include the cost of boxing, crating, and moving your possessions. You can also deduct the cost of travel and lodging for yourself and your family (though not the cost of meals).
For more information on what you can and cannot deduct from your taxes when you move because of your job, simply contact us today!