Ten Tax Tips for Individuals Who Are Moving This Summer

Summertime is a popular time for people with children to move since school
is out. Moving can be expensive, but the IRS offers 10 tax tips on deducting
some of those expenses if your move is related to starting a new job or a new
job location.

  1. Move must be closely
    related to start of work
    Generally, you can consider moving expenses incurred
    within one year from the date you first reported to a new location, as
    closely related in time to the start of work.
  2. Distance Test Your move meets the
    distance test if your new main job location is at least 50 miles farther
    from your former home than your previous job location was.
  3. Time Test You must work full time
    for at least 39 weeks during the first 12 months after you arrive in the
    general area of your new job location, or at least 78 weeks during the
    first 24 months if you are self-employed. If your income tax return is due
    before you’ve satisfied this requirement, you can still deduct your
    allowable moving expenses if you expect to meet the time test in the
    following years.
  4. Travel You can deduct lodging
    expenses for yourself and household members while moving from your former
    home to your new home. You can also deduct transportation expenses,
    including airfare, vehicle mileage, parking fees and tolls you pay to
    move, but you can only deduct one trip per person.
  5. Household goods You can deduct the cost
    of packing, crating and transporting your household goods and personal
    property. You may be able to include the cost of storing and insuring
    these items while in transit.
  6. Utilities You can deduct the
    costs of connecting or disconnecting utilities.
  7. Nondeductible expenses You cannot deduct as
    moving expenses: any part of the purchase price of your new home, car
    tags, drivers license, costs of buying or selling a home, expenses of
    entering into or breaking a lease, security deposits and storage charges
    except those incurred in transit.
  8. Form You can deduct only
    those expenses that are reasonable for the circumstances of your move. To
    figure the amount of your moving expense deduction use Form 3903, Moving
  9. Reimbursed expenses If your employer
    reimburses you for the cost of the move, the reimbursement may have to be
    included on your income tax return.
  10. Update your address When you move, be sure
    to update your address with the IRS and the U.S. Postal Service to ensure
    you receive refunds or correspondence from the IRS. Use Form 8822, Change
    of Address, to notify the IRS.
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