IRS Moving Expense Tax Deduction Guide

IRS-Moving-Expense

Making the Most Out of Your Moving Expenses

Did you know that a portion of your moving expenses this year are actually tax deductible in the United States? If you have to move for work and that move is more than 50 miles from your previous home, then you qualify to take the moving expenses deduction on your taxes. The best part about this deduction is that any expenses that occur within the first 12 months which are related to moving are deductible. You must work full time for 39 weeks out of the next 52 weeks, but that full time qualification also applies to self-employment too. Even if you haven’t had a chance to hit 39 weeks before the taxes are due, you can still claim the deduction.

What Is Included In This Deduction?

What you can deduct from the moving expenses deduction are your actual costs of moving. That would include the rental of a moving truck, hiring movers to assist you, supplies you may need to help pack items, and expenses that are incurred during the move, including meals and lodging. You can even choose to deduct mileage at 23 cents per mile or keep your receipts and deduct your actual expenses – the choice is up to you!

What you cannot do is deduct the cost of items that you obtain for your own personal use that aren’t related to your move, tax costs related to your move, real estate losses, or items you’ve purchased to help sell your previous home. If it doesn’t relate to your actual moving from one home to another home, then it isn’t going to count in the moving expenses deduction.

You Can’t Deduct the Same Expense Twice

For people who own their own business and they’re moving that business along with the home, certain expenses will end up applying to both the business side of the tax return and the personal income side. You cannot deduct a moving expense from personal income and business income at the same time. The best way to make the most out of the moving expenses tax deduction if you’re also moving a business is to give the business it’s rightful portion of the deduction. If your home office, for example, composes 10% of your home’s square footage, then 10% of the moving costs ought to be assigned to the business and those expenses would then be deducted separately.

Let Your Move Pay For Itself Right Away!

Moving can be quite expensive, but you can definitely recoup some of that cost on your next tax return. Make sure to save your receipts if you are planning to take a deduction on your actual expenses, insure that you are more than 50 miles from your previous location, and you’ll be able to make back some of your lost income with a great tax refund.

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