The 2013 tax year has ended, but now is no time to forget about tax issues. This is the perfect month to start thinking ahead for next year, particularly if you’re planning a move. Provided that the move is job related, your expenses can be deducted for the 2014 tax year.
For moving expenses to qualify as a tax deduction, the new job must be located 50 miles farther from your old home than the distance between your old house and old job. In addition, the IRS requires you to be employed full time for 39 weeks of the first 12 months of your move to a new area. If you change jobs during those 39 weeks, the new job/jobs must be located in the same area.
For couples who file jointly, only one spouse must meet the criteria to qualify. The allowable deductions include the cost of:
- Packing and transporting household goods and personal effects, whether you are moving yourself or hiring professional movers.
- Moving insurance.
- Connecting or disconnecting utilities required by the move.
- Storing your belongings (for no more than 30 consecutive days after the move).
- Traveling to the new home, including gasoline, oil, lodging, parking fees and tolls. Rather than itemize those expenses, you may also opt to calculate those costs using the standard mileage rate.
For more specific details, be sure and contact your tax advisor.
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