Though the end of the year brings great times with family and friends, it also means tax filing season will soon begin. As you start to think about 2014 and anything that may help you with your tax filing, have you considered the moving expense tax deduction and all that you need to know about it?
According to TurboTax, there are three main considerations when weighing whether a moving expense tax deduction may be good for you: the timing of your move, the distance for your move, and meeting the qualified expenses. All of which must be connected to your employment situation. TurboTax and other sources have great information that helps you get into the details of it all, but be sure to read more about those considerations before thinking you may not qualify.
As with all of your work to prepare your taxes, documentation is key. If you moved this year or are moving before December 31, be sure to give yourself a head start on gathering that documentation, organizing it, and making sense of it all — downtime over the holidays may be a perfect time to get at this. When you really start preparing your taxes, you’ll need IRS Form 3903, so you can use that as your guide. Per TurboTax, the moving expense deduction “is not subject to any limits, so you can claim all of your qualified moving costs if you meet the eligibility requirements.” The more documentation you have for your expenses, the better prepared you will be to back up your deduction.
After you consider what you can include and before you actually file, make sure to know the costs that you cannot include in your moving expenses tax deduction, too. This will save you a headache and potential legal trouble later.
Is the moving expense tax deduction right for you?
Though this post and any suggestions from us at Premier Relocations are friendly reminders and not legal or financial expertise, we hope you don’t miss out on the moving expense tax deduction if you are eligible. If you have questions about any part of the moving expense tax deduction, be sure to read more at irs.gov and consider making an appointment with someone who has the right expertise as a tax professional.