Miami moving tax deduction terms
As you already know by now, relocation is a costly endeavor. So no matter if we are talking about local or interstate moving, the fact of price remains. And so many things to consider – DIY or hiring a professional Miami mover? Will it be self-packing or full service moving? And don’t even get us started on finding an apartment in Florida. Luckily however, there are always good sides to every situation, moving included. For example, if you are looking to move due to a job requirement – you can look up Miami moving tax deduction options. Just one of the many loop holes you can use to your advantage to save some money, and here’s the insight.
Miami moving tax deduction requirements
There are certain conditions that one needs to meet in order to qualify for tax deduction on moving expenses. First things you need to know is that there are many businesses now that offer this benefit. Of course, this goes as long as the relocation is due to job requirements. So anyone can achieve Miami moving tax deduction as long as certain criteria is met. And in order to fulfill those conditions, you have to know what they are. So here it is, three simple check marks:
- Time test requirements
- Distance test requirements
- Work-related relocation to Miami
Meeting the time test
Fulfilling the time test criteria requires that you spend the first year post-relocation working a minimum of 39 weeks. And just to stop you in your worrying tracks, this does not mean you have to work 39 consecutive weeks. There is still time for vacation in between those weeks.
Further more, you don’t even have to work for the same company the entire 39 weeks. And another useful fact is that the IRS does not delegate a specific number of days or hours that you should spend working. Companies have different definitions of full-time employment nowadays, so the IRS uses the accepted standard of the industry in question. So if you are hunting for that Miami moving tax deduction, get down to crossing out weeks. Once you start, that week 39 will be just around the corner.
Running the distance test
In case you haven’t guessed it already, local relocations will not get you in the Miami moving tax deduction zone. Fulfilling the distance test requires that your new job be 50 miles farther from you home than the old job was. So let’s say your previous job was 10 miles away from your place – the distance between your new job and your old apartment has to be at least 60 miles. And in order to satisfy the distance test, IRS uses the shortest commutable routes as a standard.
Relocating to Miami for the right reasons
One of the best reasons to move is for the purposes of new work. It is also the most important condition for achieving Miami moving tax deduction. Work-related moving can help you deduct all relocation expenses that pilled up within a years time. This means that you could even move first, then find work and still be able to qualify for tax deduction. But remember that it has to be within one year and that there are the time & distance tests to fulfill.
Another important trivia is that you can’t get tax deductions if your employers is covering the relocation costs. But if you are hiring a professional Miami mover out of your own pocket, just take a 3903 Form and attach it to your tax report.
Deductible expenses during your relocation
So as long as the mentioned requirements have been met, you can have the following Miami relocation expenses deducted:
- Packing and transporting household possessions –you may use professional moving company or use your own labor and vehicle. However the moving services of a moving company and all that they include is deductible.
- Renting a Miami storage unit and purchasing insurance for a 30-day period.
- Expense of shipping your vehicles and/or pets.
- Charges required for connecting or disconnecting utilities.
- The cost of travel and lodging for both you and your family during the actual move from your old home to your new one. In particular, this refers to one day after moving out and traveling to your new place and the first day you move into your new Miami home.
So these are all IRS-approved moving expenses that qualify you for tax deduction. We do advise that you consult with an accountant to get the most out of your relocation.
Be sure to keep all receipt involving your moving expenses, especially for all IRS approved. Keep your bill of lading and any receipts the Miami relocation company gave you (if you have hired one that is). And in case you opted for a DIY relocation, everything from renting a truck, purchasing packing supplies etc. should be documented and kept.
Expenses not qualifying for your Miami moving tax deduction plan
Even though there are plenty of costs that fall under this tax deduction, there are still some that do not. So in case you are wondering, these are some of the things you will not be able to get your money back for:
- Pre and post-move costs for food and beverages.
- Travel expenses suffered during the Miami relocation process (an expense many employers are wiling to cover).
- Real-estate expenses – buying a new home and selling the old one (many companies will reimburse you for that).
- The cost of handling and storing new furniture.
How to claim your Miami moving tax deduction
This type of tax deduction is one that can be claimed before fulfilling the actual requirements. Given the 12-month time frame required by the time test, most people would not be able to achieve it until the following tax year. IRS takes this into consideration and offers you the chance to lay claim in the year you relocate.
In order to claim relocation cost tax deduction, all mentioned expenses must be noted in the IRS Form 3903. This for is then attached to tax return pertaining to the year when you relocated to your new Miami home. If it so happens that the criteria have not been met after the 12-month time frame, the deduction request must be reversed. In this case, you will have two options:
- Include the original tax deduction amount on your next tax return under “other income”.
- Calculate your tax without Miami moving tax deduction and modify the original return.
You need to stay up-to-date and pay attention to any tax deduction requirement changes. And you can do this by using the IRS website or by hiring an accountant.