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Tax breaks may be available for moving expenses

Posted by kim carpenter on February 18, 2011
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Those of you who moved in 2010, you may be eligible for tax deductions for some of your moving expenses.

You can write off relocation costs on your taxes, as long as the move is work-related.

Some of the the deductions that may be deductible are:

  • Costs to move household goods and personal property
  • Limited storage and insurance fees
  • Utility connection or disconnection charges
  • Some lodging and travel expenses
  • Shipping costs for your car
  • Travel arrangements for your pets

Use the long Form 1040 to claim moving costs, use Form 3903 to figure the costs.

Ensure you meet the distance test – The location of your new job must be at least 50 miles farther from your prior address than your last office was.  The IRS’s distance test only considers the location of your old home and how far it is from your previous job, not your new residence

Check the time requirements – Moving expenses are deductible if they were incurred within one year of starting a new job.  You also have to work full time at a new job for at least 39 weeks during the first 12 months.  As for self-employed workers, they must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months.

Collect all of those moving receipts – To claim the deductions, make sure you have receipts such as for the costs.

Always consult a tax professional before taking any deductions!

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