We at the Moving Advantage and Storage have put together a list of answers for the frequently asked questions. We hope they help you answer some of your basic doubts, and provide you with valuable information. If you have any doubts or questions please feel free to call us at 1-800-909-9982 and our staff would be more than happy to assist you.
Q1. Can I get a tax break on my move?
If you're one of the 17 percent of the population who moved during the past year, you may be pleasantly surprised to know that many of your moving expenses can be deducted. In fact, if your relocation meets the necessary requirements, "reasonable moving expenses" can be fully tax-deductible. Tax savings on the typical $3,500 household move can add up to as much as $1000.
If you have been, or are going to be, fully reimbursed by your employer for your moving expenses, you don't have to claim the money as part of your income. That means you don't have to fill out a moving expense tax form. On the other hand, if you paid for your own move, you can still save a bundle by knowing which moving expenses are deductible. Moving experts at National Relocation Services offer the following helpful information.
The Six Criterias
There are six criteria you must meet in order to deduct moving expenses. If you meet the criteria, you can deduct those expenses even if you don't file an itemized return:
1. You must be moving to a new principle residence to work as an employee or as a self-employed individual at a new principal place of work.
2. Your new job location must be at least 50 miles farther from your former residence than your old job location.
3. You must be employed full time in the general vicinity of the new job location for 39 weeks during the 12-month period following the move. The self-employed person must continue to work in the new location for at least 78 weeks during the 24 months following the move, of which at least 39 weeks must be in the first 12 months.
4. If you pay the expenses I none tax year, but do not satisfy the working requirements by the due date of the tax return, you may still deduct the expenses if you reasonably expect to satisfy the condition in the succeeding tax year. If you fail to satisfy the requirements, you must report an equal amount of income in the succeeding year or amend the prior year's return.
5. You may not deduct expenses in excess of a reasonable amount.
6. Foreign moves and moves by military personnel are subject to special limitations.
Among the expenses you can deduct are transportation from old residence to a new residence, all packing and crating, all unpacking, 30 days of storage-in-transit if you need it, 30 days insurance to cover your belongings, the shipping of your automobile, transporting your household pets (see below), and of course the family trip to the new residence. Sorry, except for meals.
Becoming familiar with deductible allowances for moving expenses will allow you to take advantage of tax savings available to Americans on the move. For more information on deducting moving expenses, contact the IRS Problem Solving Line at 1 800 829 1040 and ask for publication number 521 on moving expenses.
Relocation Savings Because You Own a Pet:
That's correct! Your pet's moving expenses are tax deductible. Check out the IRS Publication # 521 - "Moving Expenses" clearly allows pet moving as tax - deductible relocation expenses when your relocation and moving is for the purpose of change of employment.
If you have received a lump sum relocation allowance, or if your pet move is relocation reimbursable, or if your pet moving expenses are to be invoice able to your company, your house hold goods mover, or your relocation management firm.
Consult your tax advisor, HR benefits administrator, Compensation and Benefits supervisor or tax advisor for further information.