Tax Tips 2017: Moving Expenses

Moving Expenses

Moving into a new home to take a new job that requires you to change cities or states can be a lot to handle. There are many things that you have to take and it can be hard to keep track of it all. Something you should not forget is that all the expenses for moving into your new home can be deducted without having to itemize your return.

In order to see if you qualify, the IRS has some tests:

  • Distance: The new place of work must be at least 50 miles farther than your former home was from the main workplace of your old job. If it is your first job, or if you have been unemployed and are return to work, the new workplace must be at least 50 miles from your home.
  • Time Test: As an employee, you must work full-time for at least 39 weeks during the first 12 months after you arrive at your new job. As a self-employed worker, you must work 39 weeks during the first 12 months and 78 weeks during the first 24 months after you arrive.

After you pass these tests, then you are allowed to deduct 19 cents per mile if you use your own vehicle to move. You can also deduct the costs of moving your belongings as well as any lodging expenses on your way to your new home.

If you want to know if you qualify for these deductions, give us a call at (714)-533-2600 to schedule a free consultation to make sure you are maximizing your deductions. 

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