subject: Deducting Moving Expenses From Your Federal Taxes [print this page] Moving to a new home usually requires a lot of planning prior to the actual move. Moving companies in Washington DC will assist you with the packing, loading, and transportation. However, there are other issues to be addressed as well. One of them is to work out a way how you can deduct moving expenses form your federal taxes. If you don't plan ahead of time, then you might end up incurring huge expenses.
First, you need to know about the conditions to be fulfilled for deducting moving charges:
Expenses can be deducted within one year from the date when you join work.
For self-employed people you need to work in the new city for a minimum of 39 weeks in the first 12 months and 78 weeks during the 24 months after your move. If you are working under someone, then you need to complete a period of 39 weeks during the 12-months following your move. In case of termination for reasons other than for willful misconduct, disability, or death this condition can be waived.
A deduction is possible if your new workplace is located at least 50 miles farther from your previous home than your old office.
The non-reimbursed charges of moving household items and other belongings to a new house is allowed as a deduction in order to determine federal adjusted gross income. Cost related to packing, crating and unpacking; storage-in-transit and valuation (each limited to 30 consecutive days) are included in it. You can report non-reimbursed moving expenses on Federal Tax Form 3903.
Now that you know about the qualification criteria, let us come to the expenses that come under the deductible category:
Cost of transporting pets like cats, fish, dogs, and so on.
Cost of connecting and disconnecting utilities during the time of move.
Expense of shipping your vehicle or boat.
Charges of moving personal belongings from a place other than your former home, but not more than what it would have cost to move them from your old residence
Family trip to the new home that excludes meals but is applicable for lodging.
Foreign moves or military moves are privy to some exceptions.
Expenses can't be deducted if the amount is astronomical.
Bear in mind that if you pay the expenses in a single tax year, but you are unable to satisfy the working criteria by the filing deadline, you can continue deducting the expenses if you can expect to meet the condition in the following tax year. But if you are unable to do so, then you need to report a similar amount of income or amend the previous years' tax return. Need help during the move? Go online and look up the various Washington DC movers and the services offered by them. You will surely find a company that suits your requirements.
by: Nail Smith
welcome to Insurances.net (https://www.insurances.net)
