If you prefer to move and start a new job, you have to spend a high amount of money. This includes the cost for shipping and packing your household goods and other properties. To help you with your tax, IRS allows tax payers to deduct a particular moving expense from your taxable income.
However, not all people are allowed to deduct moving expenses. To qualify for this, you need to meet three distinct requirements, and these are the following:
- Your move must be work-related. It means that your new home should always be closer to your new job. You should also start working at your new job after moving.
- Your present work location should be 50 miles away from your former house.
- You must be employed at your new job at least 39 weeks after you move.
If you are not aware on how to deduct moving taxes, conducting accurate research is a must. You can also ask assistance from your friends. Instead of worrying on how to deduct your expenses, here are the exact procedures you shouldn’t miss to know:
- Understand the following requirements to recognize your eligibility for a tax deductible move. These requirements are mentioned above.
- If you meet the given requirements, you can deduct your expenses. In deducting, you have to include the packaging and moving costs. You also need to add the travel expenses to your new home, storage goods and other expenditures.
- Since you need some of your expenses, you have to keep all the receipts. These receipts will serve as your proof of your expenditures.
- Start consulting your tax advisor. This can help in ensuring that your moving expenses are all valid.
In case you were reimbursed by your employer for your expenses, the best thing that you can do is to deduct your expenses during the year that you pay them. In deducting your expenses, you also need to use the right form. As advised, you have to complete the IRS Form 3903 and transfer the resulting deduction to your tax return. If you prefer to deduct online, you can get the Form 1040 and Form 1040 NR.
Deducting tax expenses is not too difficult, especially when you have knowledge about its exact procedures. In case you find it hard in deducting, you can simply visit the authorized department and start asking about its methods. Since you need to hire a tax advisor, make sure that you deal with a reliable one. Some tax advisors are not authorized to do the transaction. Therefore, you have to be more careful in choosing the best advisor to deduct your expenses.
Though there are several ways on how to deduct your expenses, you will find it fast and easy. Simply follow the exact procedures and everything will go according to your plan. Are you planning to move? Then, always prepare and keep your receipts. Make sure that you settle your moving expenses and ask for a tax deduction.
About the Author: Margarita Hakobyan is a writer and blogger for Movers Corp, online marketplace that provides local movers and moving labor providers nationwide. Margarita Hakobyan writes about moving and storage industry and also tips on how to prepare and plan for a move
Latest posts by OSSD_Blogger (see all)
- Plentiful Self Storage Facilities in Corpus Christi - September 3, 2013
- Preserving Your Stuff with Newark Self-Storage Units - August 27, 2013
- Quality Self-Storage Choices in New Orleans - August 17, 2013