Did you know that 90% of America stresses about money more than anything else in their lives? (inc.com). With tax season upon us, many Americans worry about whether or not they will owe the government a large sum of money. Deducting certain expenses is a great way to help increase your likelihood of getting money back on your tax return. Though Fry-Wagner cannot give you tax advice, we have prepared a list of 5, of the possible, tax deductible moving expenses below. You should always consult your tax preparer or the IRS about your recent move in order to get a better understanding of your eligibility for tax deductible moving expenses!
- Cost of renting a storage unit: Moving often requires storage. If you used a storage unit during your move, you may be able to deduct the cost of the unit for up to 30 days that you did not have access to your new home.
- Cost of travel: If you chose to drive to your new home instead of flying, you can deduct the cost of gas, parking, oil, and tolls. If you moved long-distance, the cost of your airline tickets or train tickets may be deductible as well.
- Lodging expenses: If your travel required a stay in a hotel for an extended period of time before you were able to move into your new home, you may be able to deduct the cost of your lodging.
- Connection and disconnection fees: The fees that you paid to disconnect/reconnect your utilities are also tax deductible.
- Travel expenses for pets: Travel arrangements for furry friends can become costly. However, you may be surprised to know that you can deduct travel expenses for pets. This can include vet visits, boarding, and added fees for airline travel.
Deducting your moving expenses can be helpful during tax season, but there are requirements to qualify. To receive tax breaks for your move, your reason for moving must be closely related to the start of a new job that is at least 50 miles farther than your last home was from your old job. For example, if you lived 20 miles from your old company, your new company must be located at least 70 miles away from your previous home before you can become eligible to deduct your moving expenses. You also must have accumulated these expenses within one year of starting the new job, while also being a full-time employee at the new company for at least 39 weeks.
If you meet the all above requirements, talk to your tax preparer about your recent move, so they can assist you with deducting your recent moving expenses. For more information on moving, or to schedule your free in home estimate contact us today!