It’s that time of year again; the time of year when you begin to gather all of your information related to filing your yearly tax return. And while some people dread this time of year almost as much as they did when they moved, it can also be a time when you gain a bit more money in the form of a tax return check from the federal government that you can use for anything you want. One of the things that many people look at when they are preparing to file their taxes for the previous year is any moving expenses that were incurred the year prior. While not all moving expenses are eligible to be claimed, there are some situations where you can deduct your moving expenses so that you pay less in taxes overall. While the process to discovering your eligibility might be long and arduous, it is still worth it to look into the possibility. To that end, here is a simple guide that will walk you through the process.
Are You Eligible?
The first thing that you need to do when you are trying to find out if you are eligible to claim your moving expenses from your taxes this year, while saving money on your move at the same time, is to answer the two main questions that the IRS asks of people looking to claim moving expenses. These questions are simple; did you move more than fifty miles from your old home due to a job that was located that far away from the old house, and did you work at least 39 weeks out of the first twelve months following your move. Furthermore, if you are self employed, did you work at least 78 weeks out of the first two years following the move. If you meet these requirements, then it is likely that you can claim your moving expenses in relation to your move on this year’s tax return.
What Can You Deduct?
It can be confusing to decide what expenses you can deduct if you meet the requirements and are eligible for the moving expenses deduction. The IRS is pretty generous, however, and you can claim a lot of things related to your move. If you’ve ever gotten moving quotes, then you know the cost of hiring movers is fairly high, but the IRS allows you to deduct these expenses if you meet the eligibility requirements. You can also claim up to a month in storage costs, as well as the cost of moving insurance that you had to purchase to protect your goods throughout the move. Another thing you can claim is the lodging and travel costs associated with one trip from your old home to your new home. This can include a per mile charge for gasoline and maintenance on your vehicle, as well as any necessary arrangements that were required for the move to be successful.
Claiming Your Moving Expenses
Perhaps the best part about claiming your moving expenses is the fact that the IRS does not require you to itemize these deductions. Instead, there is a special IRS form that must be filled out and attached to your tax return in order to be eligible. This makes the process simple for anyone who is eligible for this deduction, and thus, the credit on their taxes that might just result in more money in a person’s pocket following the highly expensive move. While not everyone can claim these moving expenses, it is always worth a look to see if you are eligible. In the end, the money that you can save may make the expenses associated with moving to a new home something that you can deal with until it is time to file your next tax return.