Tax Tips For Relocating Tax Tips For Relocating

Tax Tips For Relocating

Thursday, November 08, 2012

Tax Tips for Relocating

Tax Tips

Moved or planning to move this year to start a new job? You may be able to deduct certain moving-related expenses on your tax return. You may be able to deduct these expenses even if you kept the same job but moved to a different location. Here are some tax tips offered by an experienced Colorado Springs realtor:

1. Expenses must be close to the time you start work.

Consider moving expenses that you incurred within one year of the date you first report to work at a new job location.

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 main job location was. (Ex: If your old job location was 3 miles from your former home, your new job location must be at least 53 miles from that former home.)

3. Time Test.

You must work full-time for at least 39 weeks during the first year at your new job location. Self-employed individuals must meet this test. During the first 24 months at their new job location, self-employed individuals must work full-time for at least 78 weeks. If your income tax return is due before these requirement are fulfilled, deduct allowable moving expenses if you expect to meet the time test. There are special rules and exceptions to these general rules. Call us for more information.

4. Travel.

Deduct lodging expenses (but not meals) 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, 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, including the cost of shipping household pets. 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 the following moving-related expenses: any part of the purchase price of your new home, car tags, a drivers license renewal, costs of buying or selling a home, expenses of entering into or breaking a lease, or security deposits and storage charges, except those incurred in transit and for foreign moves.

8. Form.

You can deduct only those expenses that are reasonable for the circumstances of your move. Call us if you have any questions.

9. Reimbursed expenses.

If your employer reimburses you for the moving costs for which you took a deduction, the reimbursement may be required as income on your tax return.

10. Update your address.

When moving, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive mail from the IRS. Use Form 8822, Change of Address, to notify the IRS.

If you are interested in getting more information because you are buying a Colorado Springs Home or relocating to or from Colorado Springs , please contact us at or call

Thank you and sincerely,

Turner Associates | Colorado Springs Realtors

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