Moving to a new place for a new job is costly to many employees. Some employers have to cover up your relocation expenses, but that doesn’t count in every case. Yet, certain aspects allow your moving taxes to be deducted-on the condition that you fulfill the proper forms and requirements. Here’s a 2020 guide to tax deductions for moving costs.
Eligibility to the tax deduction for moving expenses
You must fit under the criteria to claim your rights for the tax deductions. If you fill the following requirements, the IRS allows taxpayers to deduct some amount of moving expenses tax.
One of the criteria is the distance. So, the location of your new work must be at least farther away from your previous home than your old work location. Therefore, if you’re moving to save time on your commute, tax deductions will not apply to you. But, to come under this criterion, measure the distance between your old home and the old workplace. If the second distance is longer than the first one by 50 miles, you fall under this category. For this type of relocation, you can use moving locally-tips and tricks for a successful move. They are helpful.
You have to move into your new home within one year of the time you start working at your new place. To qualify for the tax deduction, the relocation timing should happen simultaneously with your new work location. Plus, it should be closely related to the time you begin your employment status. So, if you start working and then move into your new home after a few months, you’ll satisfy these criteria.
Not Tax-Deductible moving costs
Getting some tips on how to get a discount when moving is one thing. But when it comes to getting some tax-deductible moving costs, that is a whole other thing. And even though there are tax-deductible moving costs, there are also some not tax-deductible moving costs. You see, certain conditions are not providing any tax deductions, and because of that, you should be cautious in avoiding them. For example, having meals during moving is not taken under the tax deduction rule. Then, moving into a temporary home before settling into your new residence also does not befall under those rules. These are just some of the things you should have in mind when moving. That’s why your job is to find some more so you won’t be surprised when you see the final price.
Conclusion about this guide to tax deductions for moving costs
You see, even when we are now in 2020, moving is still a huge task. And this process is not only about packing your belongings in boxes and leaving. There are so many things you have to consider because you have to make sure that all the expenses are taken care of ahead times. This is something you have to take seriously since it is always better to be prepared than to have things done at the last moment. So, have a guide to tax deductions for moving costs by your side and you will be ready when the estimate comes.