Can You Use Tax Deductions To Make Your Move Affordable?

8 June 2015
 Categories: , Blog

Depending on the circumstances of your move, there is a good chance that you can receive a little financial assistance for it from the federal government. The Internal Revenue Service, or IRS, allows you to deduct some of the expenses of moving in certain situations. Here is what you need to know about your possible deductions.

When Can You Claim a Deduction for Moving?

In order for you to receive a deduction for moving expenses, the move has to be related to work. For instance, if your employer wants you to relocate to a new city to work, you can potentially receive a deduction for your moving-related expenses. However, there are distance and time restriction requirements that must be met.

What Is the Distance Requirement?

In order for you to receive the work-related deduction, your new work location must be at least 50 miles away from your current home. For instance, if you live 25 miles away from your current work location, you have to move at least 75 miles away from your current home to receive a deduction.

The IRS has another special restriction on how you can calculate the distance, too. For instance, you have to calculate the distance using the shortest route possible. Even if you take a different route to get to and from work, you still have to use the shortest possible.

What Is the Time Restriction Requirement?

The IRS will not allow you to claim the deduction if you do not meet a certain time restriction requirement. You are only allowed to take the deduction if you have started the new job within one year of moving. You also have to prove that you have worked at least 39 weeks on a full-time basis within that time period.

Which Expenses Are Deductible?

Even if you meet the distance and time requirements, you can only deduct a portion of your moving expenses. For instance, expenses related to packing up and transporting your belongings are deductible. You can also deduct some storage fees, moving-related traveling expenses, and the costs of disconnecting and reconnecting utilities due to the move.

There are some additional expenses that you might qualify to receive a deduction for. Refer to the IRS's website to learn more.

Talk to local movers such as Bekins Van Lines Inc about other possible ways you can save money on moving to a new location. With a little help, you can find other ways to make your move more affordable for you and your family.