We know it’s only the end of January, but we’re sure many of you are already preparing to file taxes for 2016. Congratulations on being prepared – we’re big fans of preparedness at Primetime Movers! Starting a new job, uprooting your family, and moving either locally or long distance can all take a toll on your monthly budget. Don’t worry; we have good news. Your move may be tax deductible!
Do I Qualify?
The IRS is surprisingly clear when it comes to what qualifies you for a moving expense tax deduction. In order to qualify, you will need to fit into these criteria:
- The reason you moved is key – You have to have moved for employment-related reasons. This means either because you got a new job or were relocated by your employer, or you moved because you started a new business. Whatever the reason for your move, you can only deduct it if your move was closely related to work.
- Time makes a difference – obviously, to claim a deduction on a 2016 tax return, the move had to take place during 2016. However, in addition to this, you have to meet an additional time requirement. If you are employed full-time, you have to work at least 39 weeks during a 12 month period. If you are self-employed, you have to work 39 weeks during 12 months and you must work 78 weeks in 24 months at your new location.
- Distance matters – to qualify for a moving deduction, you also have to have moved at least 50 miles away. The IRS has a handy calculator on their website but, in essence, your new job has to be at least 50 miles further away from your old home than your old job was. If you are self-employed, your new business has to be at least 50 miles away from your old home.
If you meet these three criteria, you are most likely eligible for a tax deduction. However, if you are a member of the armed forces, note that the distance and time requirements do not apply to you.
Make Your Move Easy
When it comes to relocation for a new job, a change in position, or company restructuring, time can often be a big factor. Many companies expect you to start within two weeks, which is not much time to give notice, pack your home, and move house. Even if you’re not going that far, hiring local movers to take care of the major moving labor can save time, which means you can work longer or start the new job sooner.
Call Primetime Movers today to schedule your local or long distance move so you can get to work sooner!