The Secret to Claiming a Move on Your Tax Return

The Secret to Claiming a Move on Your Tax Return

No matter how you do it, and that the end of a move, you are going to be out some dough. These are unavoidable expenses that come with relocation that in most of the cases will not be recovered. You can however use them to get something more back from Uncle Sam.

When you move in a calendar year as a result of a change in employment, or because you have changed where your own company is located, you are entitled to write off those expenses. Keep in mind that these tips are only applicable if your company is not reimbursing you for your moving expenses. If that is the case, then you the IRS will not give you any type of tax break for your work related move.

How to Qualify for the Deduction

As with most things tax-related, it is not going to be easy to qualify for this deduction. If you are an employee claiming a move on your taxes, you must’ve worked full-time for at least 39 weeks during the first year immediately following your arrival in the area of your new job. For business owners or self-employed individuals, you must have worked for a total of at least 78 weeks during the first 2 years immediately following your move.

The second catch is that your new place of work has to be at least fifty miles away from your old house than your old job was. For example, if you change jobs and make a local move in Hialeah Gardens, you most likely are not going to qualify for the tax break.

In other words, you are only going to qualify for this deduction on your taxes if your new place of employment is a considerable distance from the home you have moved from, and you consistently worked there throughout the year following the move.

Exceptions that May Help You Qualify

Exceptions to the qualifying rules are given to members of the armed forces who received a military order for a change in permanent station assignment. You might also be able to qualify without meeting the requirements if the move was the result of a death disability or involuntary separation.

Tax Form 3903 is used to figure out your qualifying moving expenses and the total is added to Form 1040 as an adjustment to your reported income. You should hold on to your moving expense receipts for a period of seven years after filing if you do claim them on your tax forms.

This is only broad advice for getting a little back on your taxes if you are moving because of a change in employment. If you do think that you qualify for this type of tax break for the upcoming year, you should consult with a qualified tax filing expert first.