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2007
13
November

Moving For Your Job? You Could Claim a Tax Deduction

by Aazdak Alisimo

The nature of employment these days is such that you often have to move from time to time. If you have gone this process recently, there is some good news for you. You just might be able to claim some tax deductions related to it.

When one thinks of moving, it is usually to cringe. After getting your taxes done, it comes in close to going to the dentist on least favorable things to do. That being said, it is more and more of a necessity these days.

It used to be that you could take a job with a company and count on staying there for thirty or forty years. Those days are long gone as we all know. From downsizing to salary concerns, we all move because of employment reasons.

The federal government always seems to be about 20 years behind the times, but not in this case. It has acknowledge the changes in society and created tax deductions for people who move for employment purposes.

There are a couple of tests that have to be passed before you can start claiming deductions. The first is the mileage test. Simply put, the location of your new job must be at least 50 miles farther from your former home than your last job.

A practical example will work. Assume my last job was 7 miles from my home. My new one is 67. I have passed the test. If the new one was only 27 miles, I could not. Yes, it is a strange test, but it is par for the course when talking about the IRS and taxes.

One test is never enough with the IRS. There is another test that requires you to work roughly ten months out of the twelve full time after the move before you can claim the deduction. The exact requirement is thirty-nine weeks in the 12 months.

Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks.

There will be a natural temptation to claim moving deductions, particularly if you are close to passing the tests. Don’t. The IRS closely watches how taxpayers claim new tax deductions, so you don’t want to get audited.

So, what is deductible assuming you meet the tests? Well, the reasonable moving expenses you incur. These include the costs of moving household items and your personal effects as well as traveling expenses including lodging.

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