When You Can Claim (At Least for Now) Moving Expenses as a Tax Deduction
Moving can be a tiring and expensive event. There’s a lot to remember, organize, sell, buy, and – of course – pack. If you’re moving to start a new job or business, it’s even more important to arrive in a relaxed frame of mind. Did you realize that if you are, you may you may be able to deduct some of your moving expenses? Here’s what you need to know.
Requirements for Eligibility
You can deduct your moving expenses if you meet all three of the following criteria:
– Your new workplace must be at least 50 miles further from your previous home than your old job was. If you had no previous workplace, your job location must be at least 50 miles from your prior home.
- Time – If you’re an employee, you must work for a minimum of 39 weeks for the first 12 months immediately following your arrival. If you’re self employed, you need to meet this requirement plus work for a total of at least 78 weeks during the first 24 months. In both instances, your work must be in the general area of your new location.
- Start of Work – You incurred the moving expenses within a year after first starting work at the new destination.
You’re required to keep accurate records of expenses including receipts and mileage logs. It pays to use a reputable moving company as your employer and the IRS will need a detailed breakdown of costs.All Jersey Moving & Storage has been in business since 1956and has won a Circle of Excellence award from the New Jersey Warehousemen & Movers Association. We provide detailed estimates with no hidden surprises.
Obviously, your employer will want you to use an affordable mover and keep costs down. You should always obtain three quotes to show you’ve done your homework and made a proper comparison. Despite the quality service we offer, our charges are reasonable so there’s no need to risk entrusting your possessions to a man with a truck operation.
Expenses that can be claimed include the following:
- Packing, crating and transporting your household goods. All Jersey Moving & Storage provides packing and unpacking services; besides being deductible, this will eliminate a lot of stress while saving valuable time so you can restart work quickly.
- The cost of traveling via the shortest, most direct route using conventional transportation – stopovers are not covered. If you travel by car to your new destination, you can claim the actual expenses such as oil and gas or use the standard allowance of 23 cents per mile. Whichever method you use, you’re allowed to deduct parking fees and tolls but not general repairs or insurance for your vehicle.
- Lodging including accommodation near your former home within one day after you could no longer live there because your furniture had been moved; and accommodation the day you arrive at your new home, even if it’s only on a temporary basis. Note: Allowable travel and lodging expenses do not include meals.
- Storage and insurance of household goods and personal effects within a period of 30 consecutive days after they’re moved from your former home and before being delivered to your new residence. This is another convenience we can offer you. All Jersey Moving & Storage has its own secure containerized storage facility so we can transport any items you don’t need immediately straight to storage including documents, office furniture and electronics.
All Jersey Moving & Storage specializes in expedited service on long distance moves within a 500-mile radius, up and down the East Coast. This means you can relocate quickly without waiting for days for your possessions to arrive. We also handle moves to the remainder of the U.S. in partnership with National Van Lines. We have many satisfied clients who have used us for both residential and commercial moves. Contact us now for a free quote.