Are you planning to move in the near future? If you are then you should know how moving may affect the filing of your tax return. Here are a few items you should note as you prepare for life in your new location. (Please consult a tax professional or the IRS if you have questions about any of these items as this article is a general overview of the topic.)
- Change your address with the Internal Revenue Service (IRS) and US postal service: This will ensure that you get all notices that come from the IRS. As you can imagine, any correspondence coming from this agency can seriously impact your tax and income situation. We recommend that you feel out a Form 8822 Change of Address and mail it to the IRS if you are moving soon.
- Know that certain of your moving expenses may be tax deductible: Deductions that you may be entitled to make under certain circumstances include travel expense such as airfare, mileage, parking, tolls, and hotels. You may also be entitled to deduct expenses such as the cost of packing, transporting, insuring, and storing your personal belongings.
- Know the things for which you can claim a deduction: These include but are not limited to professional moving company costs, gas and oil for your trip, packing supplies, move insurance, storage for up to 30 days after your possessions have been moved, etc.
- Know the things that are not deductible: You cannot, for example, deduct the cost of meals during your move nor can you deduct expenses for which your employer has already reimbursed you.
- Know that in order to claim a job-related deduction of your moving expenses, your move must meet three requirements: (1) Your new job must be at least 50 miles farther from your old home than your prior job location, (2) You must work full-time at your new job for at least 39 weeks the first year after the move, (3) Your move must be related to the start of work.
Note the above items before you move and your relocation will come off without a hitch and without incurring the ire of the Internal Revenue Service. Our Calabasas moving and storage can help you with the difficult tasks of moving. Our relocation company in Los Angeles specializes in making the move to your new home as stress free as possible by providing you with quick, courteous and professional service.