Moving long distances is a costly venture or can be. If your move to Phoenix happens to be work related, there is a chance you can recover some of your expenses. The Internal Revenue Service allows for tax deductions under certain instances.
How do I know if I qualify?
For work-related moves, there is a three-rule test that will help you see if your move is eligible to give you a tax refund. If you are eligible for a tax refund for moving expenses, you then you will meet all three requirements listed below. To confirm this information or look up other tax deductions visit the IRS website:
1. Time test – A move must take place within a year of the start of a new job. For example, you cannot commute to Phoenix for two years and then decide to move and expect a tax deduction.
2. Employment length – For a move to be considered eligible for tax deduction, you must work for your employer for at least 39 weeks in the year following the move.
3. Distance test – This particular rule is a little tricky to figure out, but the distance to your new job must be 50 miles or more father away from your present home than the old one. In other words, if you live 20 miles from your old job, your new job must be 70 miles away for a closer move to qualify you.
What can I claim?
So, what happens if you do qualify? What can you get in regard to your tax refund? You’re going to find a whole lot of things can count for deductions if your move fits the criteria. You can deduct such things as the physical move of goods, storage of household goods, travel expenses and lodging. Other deductions might also apply. Keep a mileage log and all the receipts from your moving expenses to help you fill out your tax forms or keep them handy just in case you are audited.
Moving costs enough as it is. There’s no reason to walk away from a potential refund. Keep track of your expenses related to a Phoenix move and you just might find they can apply toward a huge tax deduction in the coming year.
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