If you’ve recently moved or you are only planning to move in the near future, you must be a bit worried about the moving costs. It is a well-known fact that relocation can end up costing you a lot of money. There are just so many ways to spend during your moving days. You need to hire local or long distance movers Florida, you need to buy packing supplies, transfer all your belongings, perhaps remodel your new home… The list goes on. So it is really no wonder that many people are curious about the ways to deduct moving expenses. Is this even possible nowadays? If so, what can you do about it? Here’s a quick guide on the subject.
Are moving expenses deductible in the first place?
This might seem like an easy enough question that calls for a simple answer. However, the answer is both yes and no. For example, if you moved back in 2017 for a job using the services of movers Oakland Park FL, those expenses may be tax-deductible. Unfortunately, that particular tax break was omitted in 2018. It will remain for sure until 2025, which means that you are now unable to deduct moving expenses. So basically, if you moved prior to this tax break omission, you can apply for a moving expenses deduction. Also, members of the military will still be able to deduct moving expenses if they need to relocate for a change of station.
What if I moved before this tax deduction was omitted?
It would make sense that if you moved in 2017, it makes you automatically able to deduct moving expenses. But it isn’t quite so. There is a set of rather specific circumstances which would allow you to be able to take this deduction. So how will you know if you qualify or not? There are actually three pretty specific factors that play an important role here.
- The exact time frame of your relocation. You need to begin working at your new job position within one year of your relocation. Whether you move before or after your first day at a new job – it doesn’t matter. All that matters is that your first day at work and your moving day are not further than 12 months apart. So basically if your new job starts in May, but your family moves in November, you can indeed qualify for moving expenses deduction in 2017.
- The distance you need to cross to your new position matters. Now, this is a part where you need to pay close attention. You see, your new job has to be at least fifty miles further away from your old home than your old job. What this means is that if your new position is just 30 miles away from your old home, you cannot expect moving expenses deduction.
- The duration of your employment. In order to deduct moving expenses, you need to work for at least 39 weeks within the first year after your relocation. For those of you who are self-employed, you must work for 78 weeks in the first two years following your relocation. So as you can see, finding reliable moving services Florida is the easiest part of your moving process by far!
What if I don’t meet the criteria?
Clearly, these factors we’ve just mentioned are very straightforward. Their sole purpose is to ensure that the deducting moving expenses can only be applied to people who need to move for work. There are, however, some exceptions. These include the following examples:
As we’ve already mentioned, active military members are to be excluded from some of the deduction rules. Namely, they do not need to work for a certain period of time. Also, the distance test doesn’t apply to them. If you have been living abroad, and you are moving back to the USA to retire, there’s no need for you to work at a new job in order to claim moving expenses deduction. If you are no longer able to work at your new position due to disability, the length of your new job is no longer an issue. Finally, if you happen to be laid off, the length of the job requirement is no longer applicable.
Which of my moving expenses will I be able to deduct?
As you might have imagined, Deducting moving costs only covers certain moving expenses. It will not, for instance, reimburse the money you spent on meals during your trip. You can, however, add up the costs packing services Florida, as well as your moving expenses and deduct them. Also, your hotel costs during the relocation are something you can deduct, as well as the costs of the rental truck. If you spent money on packing and moving supplies, this is definitely something you can deduct. Finally, almost every relocation calls for renting some storage unit(s) – once you decide to deduct moving expenses, you can add these costs to it.
In the end, for anyone moving from 2018 to 2025, there is no tax deduction for your moving expenses (not unless you are in the military). But if you moved in 2017, there are ways to deduct moving expenses. Even though it may seem rather tedious to keep track of every little expense and detail during your relocation process, you might want to reconsider right after realizing just how much of an expense moving can be.
Saving money on your relocation
Every moving process is complicated and time-consuming, especially if you need to move for work. So why not get some of your money back? But if your only planning to move now, this means that you will not be able to deduct your moving expenses. What you need to do is try and figure out some alternative ways to save money on your relocation. Be sure to hire experienced residential movers Florida. Having a moving crew you can trust will enable you to have a smooth move.