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We are a mobile society these days. This is primarily due to the fact that our employment prospects require us to move from here to there. While moving is no fun, there can be a silver lining in the form of tax deductions. The mere mention of the word moving sends a chill down my spine. It is my least favorite thing to do without a doubt. This is probably because I end up doing it more and more as do most of you for employment reasons. Our grandparents would all be stunned to see how the job market works these days. Whereas the worked for one business for thirty or forty years, we work for a business for 3 or 4 and then move to some other job in some other location. This change in society has not gone unnoticed by the government. In a shocking move, the powers that be have actually created tax dedutions for people who incur expenses moving to a new job. Well, at least most of them. So, can you just claim deductions for your moving expenses? Of course not. We are talking about taxes, which means you have to pass tests. The first is you new job must be 50 miles further from your home than your last job. Huh? When it comes to taxes, examples always help. I live 3 miles from my current job. I apply and get a better job in another city that is 180 miles away and move. Since my new job is 177 miles away, I pass the mileage test. There is a second test as well. The time test. The time test requires you to work for at least 39 weeks during the 12 months immediately after your move. This more or less means 10 months out of the 12. What if you are self-employed? You can still claim deductions, but the time test is tweaked. You must comply with the test above and also work the same time period in the 12 months following the move. Importantly, not all moves qualify for the deduction. The fact you moved down the block and happened to switch jobs at the same time is not going to cut it. The IRS is sensitive to abuse of these deductions, so don't be too aggressive in claiming them. Okay, you passed the tests. What can you claim? Well, your reasonable moving expenses including mileage, truck rentals, and lodging. Oddly, you cannot claim meals while driving from your old home to the new one.
Article Source: http://www.rightarticle.com
Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com.
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