Moving Expenses Tax Deduction

Did you move because of a change in work location last year?

In this tough economy, many Americans are moving to find work. They can offset some of the expense of packing up for greener pastures by taking a tax deduction for moving expenses.

It’s important to know what you’ll be able to deduct before you move so you can avoid nondeductible expenses as much as possible, and keep good records of the expenses you can deduct.

Changes to tax laws for moving expenses

The rules for moving expenses are far less generous than they have been in years past, however. In years past, you could deduct expenses for a house-hunting trip. That’s gone by the wayside.

You can no longer deduct meals during a move. If you drive a moving truck across the country with the family, all those restaurant meals are non-deductible.

If your employer reimburses you for nondeductible expenses such as meals, you may have to pay tax on the reimbursement.

Deductible moving expenses

If you move more than 50 miles for work, and you or your spouse work at least 39 weeks in your new location (78 weeks if you are self-employed), you generally can deduct the following moving expenses:

Auto expenses, using either actual expenses or the standard rate for moving (23 cents per mile in 2012)

Parking and tolls

Lodging during the move

Cost to move household goods and personal items

In-transit and foreign-move storage expenses

One trip per member of your household

Lodging en route, including one day at the old location and one day at the new location

Nondeductible moving expenses

You cannot deduct:

Additional vehicle expenses, such as general repairs, maintenance, insurance, or depreciation

House-hunting trip expenses, or any other travel that exceeds one trip per member of your household

Costs of settling in to your new home, including car tags, dog licenses, driver’s license, or club fees

Security deposits lost at the old home

The cost of breaking a lease at the old home

Costs of selling the old home or buying a new one, including closing costs, mortgage fees, and points

Loss on the sale of the old home

Lost memberships and so on at the old location

Return trips to settle affairs at the old home

Meals during the move

Storage for an extended period of time after the move

Any expenses for which you take a business deduction

Additional expenses for sightseeing, or the extra expense of taking a circuitous, scenic route.

Fix-up expenses at the old home

Has the state of the economy influenced your decision to move to take a new job?

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Of course seek out a professional of your liking, tax laws change every year.

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A quick suggestion on the new move:

Change the Locks.

This is your home, and safety needs to come first. Take a close-up photo of your locks before heading out to the hardware store so you know what products to purchase. You have the option of calling a locksmith to install them if you feel like you could use some help. By doing this simple task, you will provide yourself with the peace of mind that you have the only keys when moving into a new home.

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When the decision is made to make the move, allow a professional to answer all your questions, check out our website by clicking right here.