Moving expenses are often hard on the wallet, especially if you are hiring professional movers.
However, they are tax deductible, provided that you make your move within the year.
If you are relocating because of your job, you may also be able to claim these expenses if they are reimbursed by your employer. However, in order to take advantage of the deduction, you must make sure that you document the expenses so that you can claim them as income on your tax return.
The expenses that are deductible include moving costs for packing and shipping your belongings to the new house, as well as temporary lodging while you are relocating. In addition, you may be able to claim the cost of renting a storage unit or moving your car. However, you cannot deduct side trips or expenses for eating and drinking out on the road. If you have questions, make sure you consult a tax advisor before moving.
When moving to New York, you should keep your receipts and bills for the move. These include Form W-2s, which are statements of the reimbursement received from your employer. In addition, you must keep your rental truck receipts and the Bill of Lading from your mover’s office. This guide explains what each of these documents means and how to keep them.
The tax benefit of moving expenses is still available for military personnel and others. You can take advantage of this deduction if your move coincides with a military transfer. These moving expenses are considered to be reasonable by the Internal Revenue Service. But be aware that certain costs cannot be claimed, such as furniture or goods you purchased while you were moving. You should also make sure that all of your documents support the claim.
To qualify for the deduction, you must be employed at your new job for at least 39 weeks during the year after you move. This period must be at least 50 miles away from your former residence. In addition, the move must be related to your new job. If you are self-employed, you need to work for at least 39 weeks within the year of your move.
However, if you are moving for work, the Tax Cuts and Jobs Act of 2017 changed the rules for moving expenses for employees. This new law has a temporary expiration date of Dec. 31, 2025, but it can be extended or made permanent by Congress. This new law also affects owners of C corporations.
There are some other special rules that apply to moving expenses. First, you must prove that the move is required for your job and that the move saved you money and time. If you move within 50 miles of your former place of work, you may not be able to claim the expense.