Moving, whether in the same city or to another state, involves expenses, whether we like it or not. Chicago Movers recommend that we always have an estimated budget. And, while we have that budget for our move, many of us wonder: Are Moving Expenses Tax Deductible?
The truth is that there are many doubts about this issue. Taxpayers need to know if we can deduct certain expenses from our moving expenses. The advantage is that the experts at Moving Services Chicago can tell us when we hire them.
It turns out that before 2018, there was the ability to deduct your moving expenses. Taxpayers were able to deduct certain expenses when moving to a due to starting or changing job locations. A special form (IRS Form 3903) had to be completed. Besides, eligible taxpayers may deduct “reasonable moving expenses”. It includes their household goods and personal effects. Also, expenses generated by traveling from the previous home to the new home.
Coming in 2018
Beginning in 2018, moving expenses are only deductible under certain circumstances. You may be able to claim all your moving costs only if you meet the eligibility requirements.
The timing of your move must be closely related to the start of your new job. This will allow you to qualify for the tax deduction. The condition is that you must start your new job and work full time. All this at least 39 weeks within the first 12 months after your move.
To claim moving costs, your new place of employment must be at least 50 miles further away from your previous residence. In other words, you cannot apply if you are moving into an apartment next door. For example, let’s say your previous job was about 10 miles from your home. Now, in order to be eligible to deduct moving expenses, your new job must be at least 60 miles away.
All expenses must be 100% related and necessary to your move. Reasonable moving expenses are defined as: gasoline, moving truck rental, storage (short-term), and boxes. You may include hotel costs if your move is long distance.
The most important thing to do before embarking on this deductible journey is to check Chicago Taxes. That way you can gather all the forms and requirements you need to deduct some moving expenses from your taxes.