Moving for Work? Take it off on your taxes!
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Moving for Work? Take it off on your taxes!
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- Moving for Work?
In the last few years Americans have been relocating for work at much higher rates than in previous years. Experts admit we have always been a mobile work force. However, according to a 2012 study done by Career Builder 44 percent of workers surveyed expected to relocate for work within that year.
Many top firms are willing to pay for relocation expenses in order to attract top talent. According to the Career Builder study at least 1/3 of employers are willing to pay to relocate workers. Employers are finding it increasingly difficult to recruit the skilled workers they need locally. Employees are in the same boat often having to search for work nationally rather then regionally or in their current area. This means the relocation trends of the past few years are certain to continue.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What if my new employer won’t cover all or any of my moving costs?
Not everyone works in a field or for a firm that will cover relocation expenses. However, Miriam Salpeter writing for US News advocates that doing research about relocation and firms that will cover it is a good idea before accepting a position. She also asserts that negotiating with employers to get that move paid for is common. Everything is on the table for negotiation when it comes to a relocation contract.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What moving expenses can I write off?
In addition to the actual moving costs, like hiring professional movers to pack and transport your household, the IRS will allow deductions for the travel costs of your move like lodging and gas. Meals are not an allowed deduction. However, Uncle Sam will help cover the cost of moving pets and shipping cars. The IRS allows for deductions for insurance, limited storage as well as utility disconnection and connection fees. Like any tax deductions you seek to take it is best to get professional advice before claiming deductions. The IRS provides information about which deductions an individual can make. If your employer has covered the cost of your move you cannot deduct those same expenses. However, additional expenses related to your move may be allowable deductions. For married workers filing jointly, both spouses do not have to meet the time and distance tests. However, if only one spouse meets the distance requirement, the time requirement of worked weeks cannot be combined between spouses. Moving to a new place for a new job is an adventure. While most people groan at the thought of moving we here at Good Stuff Moving do it everyday and with a smile. We strive to make our customer’s move as smooth as silk. We have helped thousands of individuals and families relocate for work across the lower 48 states. Give Good Stuff Moving a call today. Are you considering a work related relocation? What research have you done? Share your thoughts with us in our comment section below. Check back for our next post on ow to help seniors and the elderly prepare for a move.Share with friends
Facebook
Twitter
LinkedIn
Email
Our Services
Give Us a Call
651-488-4808
Request a Quote
Fill in our Form
Send us an Email
info@goodstuffmoving.com
Got Questions?
- Moving for Work?
In the last few years Americans have been relocating for work at much higher rates than in previous years. Experts admit we have always been a mobile work force. However, according to a 2012 study done by Career Builder 44 percent of workers surveyed expected to relocate for work within that year.
Many top firms are willing to pay for relocation expenses in order to attract top talent. According to the Career Builder study at least 1/3 of employers are willing to pay to relocate workers. Employers are finding it increasingly difficult to recruit the skilled workers they need locally. Employees are in the same boat often having to search for work nationally rather then regionally or in their current area. This means the relocation trends of the past few years are certain to continue.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What if my new employer won’t cover all or any of my moving costs?
Not everyone works in a field or for a firm that will cover relocation expenses. However, Miriam Salpeter writing for US News advocates that doing research about relocation and firms that will cover it is a good idea before accepting a position. She also asserts that negotiating with employers to get that move paid for is common. Everything is on the table for negotiation when it comes to a relocation contract.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What moving expenses can I write off?
In addition to the actual moving costs, like hiring professional movers to pack and transport your household, the IRS will allow deductions for the travel costs of your move like lodging and gas. Meals are not an allowed deduction. However, Uncle Sam will help cover the cost of moving pets and shipping cars. The IRS allows for deductions for insurance, limited storage as well as utility disconnection and connection fees. Like any tax deductions you seek to take it is best to get professional advice before claiming deductions. The IRS provides information about which deductions an individual can make. If your employer has covered the cost of your move you cannot deduct those same expenses. However, additional expenses related to your move may be allowable deductions. For married workers filing jointly, both spouses do not have to meet the time and distance tests. However, if only one spouse meets the distance requirement, the time requirement of worked weeks cannot be combined between spouses. Moving to a new place for a new job is an adventure. While most people groan at the thought of moving we here at Good Stuff Moving do it everyday and with a smile. We strive to make our customer’s move as smooth as silk. We have helped thousands of individuals and families relocate for work across the lower 48 states. Give Good Stuff Moving a call today. Are you considering a work related relocation? What research have you done? Share your thoughts with us in our comment section below. Check back for our next post on ow to help seniors and the elderly prepare for a move.Share with friends
Facebook
Twitter
LinkedIn
Email
- Moving for Work?
In the last few years Americans have been relocating for work at much higher rates than in previous years. Experts admit we have always been a mobile work force. However, according to a 2012 study done by Career Builder 44 percent of workers surveyed expected to relocate for work within that year.
Many top firms are willing to pay for relocation expenses in order to attract top talent. According to the Career Builder study at least 1/3 of employers are willing to pay to relocate workers. Employers are finding it increasingly difficult to recruit the skilled workers they need locally. Employees are in the same boat often having to search for work nationally rather then regionally or in their current area. This means the relocation trends of the past few years are certain to continue.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What if my new employer won’t cover all or any of my moving costs?
Not everyone works in a field or for a firm that will cover relocation expenses. However, Miriam Salpeter writing for US News advocates that doing research about relocation and firms that will cover it is a good idea before accepting a position. She also asserts that negotiating with employers to get that move paid for is common. Everything is on the table for negotiation when it comes to a relocation contract.
For those workers who will not receive any employer compensation for moving expenses, Uncle Sam will lend a hand. There are a few tests to pass in order to deduct your moving expenses:
Distance Test- Your new job must be at least 50 miles further away from your home then your last job. For example if your current commute is 20 miles from home then your new job must be 70 miles from home.
Time Test- The IRS requires that you work 39 weeks out of the first 12 months at your new job. Those weeks need not be consecutive. Most work related moving expenses incurred within 12 months of starting the new job would be deductible.
For self-employed workers the time test is 78 weeks in the first 24 months and again the weeks need not be consecutive. Moving expenses are reported on IRS Form 3903. The 2013 version of this form is not yet available but looking at the 2012 worksheet will give you an idea of what you will need to show and what you can write off.
What moving expenses can I write off?
In addition to the actual moving costs, like hiring professional movers to pack and transport your household, the IRS will allow deductions for the travel costs of your move like lodging and gas. Meals are not an allowed deduction. However, Uncle Sam will help cover the cost of moving pets and shipping cars. The IRS allows for deductions for insurance, limited storage as well as utility disconnection and connection fees. Like any tax deductions you seek to take it is best to get professional advice before claiming deductions. The IRS provides information about which deductions an individual can make. If your employer has covered the cost of your move you cannot deduct those same expenses. However, additional expenses related to your move may be allowable deductions. For married workers filing jointly, both spouses do not have to meet the time and distance tests. However, if only one spouse meets the distance requirement, the time requirement of worked weeks cannot be combined between spouses. Moving to a new place for a new job is an adventure. While most people groan at the thought of moving we here at Good Stuff Moving do it everyday and with a smile. We strive to make our customer’s move as smooth as silk. We have helped thousands of individuals and families relocate for work across the lower 48 states. Give Good Stuff Moving a call today. Are you considering a work related relocation? What research have you done? Share your thoughts with us in our comment section below. Check back for our next post on ow to help seniors and the elderly prepare for a move.Share with friends
Facebook
Twitter
LinkedIn
Email