ON AIR NOW

LISTEN NOW

Weather

Sponsored By: Two Men and a Truck
heavy-rain-night
76°
Cloudy
H 87° L 77°
  • heavy-rain-night
    76°
    Current Conditions
    Cloudy. H 87° L 77°
  • cloudy-day
    86°
    Afternoon
    Cloudy. H 87° L 77°
  • partly-cloudy-tstorms-day
    82°
    Evening
    Sct Thunderstorms. H 87° L 77°
LISTEN
PAUSE
ERROR

The latest top stories

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest traffic report

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest forecast

00:00 | 00:00

Tax help: Tax deduction for moving expenses

Moving to a new homeinvolves a lot of planning and work, and it can be costly as well. If you are moving because you got a new job, or your current job changed location, you may be able to deduct your reasonable moving expenses on your income tax return.

NOTE: The moving expenses tax deduction is an “above-the-line” deduction, which means it is taken before your AGI (adjusted gross income) is calculated, instead of after, like most other deductions. Above-the-line tax deductions are subtracted from your gross income and the resulting number is your AGI. Therefore, above-the-line deductions apply whether you itemize or not. Above-the-line deductions, like the moving expenses tax deduction, are designed to help protect your personal exemptions and itemized deductions from phaseouts. Because of these characteristics, above-the-line deductions are often considered to be the most beneficial for taxpayers.

Who Can Deduct Moving Expenses — Tests for Eligibility

In order to be eligible to claim the moving expenses tax deduction, the IRS has three main requirements that you must meet:
• Your move is closely related to the start of work
• You meet the distance test
• You meet the time test

Move Related to the Start of Work

In general, you are allowed to deduct moving expenses that you incur within one year from your first day of work. Your move must be closely related to both the location of your new job and the time you start the new job. According to the IRS, your move is considered to be closely related in place as long as “the distance from your new home to the new job location is not more than the distance from your former home to the new job location.” Your home refers to your principal residence, which can be a house, condominium, apartment, mobile home or other similar dwelling.

READ: Important tips to help you achieve your financial goals

The Distance Test

To qualify for the moving expenses tax deduction, your new job location must be at least 50 miles farther from your old home than your old job location. If you did not have a former workplace, your new job location must be at least 50 miles away from your old home. The IRS states that the distance should be determined by using the shortest of the most commonly traveled routes (so you won’t be able to use the scenic route just to meet the mileage requirement).

The Time Test

To be eligible for the moving expenses tax deduction, you must also work full-time for an employer in the vicinity of your new job location for at least 39 weeks during the year following your move. It’s important to note that these weeks do not have to be consecutive or with the same employer, so you are free to change jobs after you move. There are also exceptions for disability, death, involuntary separation, and other special situations. Additionally, if your employer transfers you or fires you after you move, the IRS will overlook the 39-week requirement.

Deductible Moving Expenses

With the moving expenses tax deduction, you are allowed to deduct the non-reimbursed cost of moving household goods and personal belongings to a new residence. This can include the cost of transportation, packing, unpacking, storage-in-transit, and valuation. Note that each qualified expense is limited to 30 days — for example, you can deduct the cost of renting a storage unit for up to 30 days (if you cannot move into your new home right after leaving your old residence).

Moving expenses that qualify for this tax deduction include the following:

  • The cost of shipping automobiles and boats
  • The cost of transporting household pets (including dogs, cats, tropical fish, etc.)
  • The moving-related cost associated with connecting and disconnecting utilities
  • The cost of moving personal belongings from a place other than your old residence (such as a summer home or relative's home), but not exceeding what it would have cost to move them from your old residence
  • The cost of lodging (for you and other members of your household) while traveling to the new residence (but not the cost of meals)

READ: How to manage your digital afterlife

Make sure you keep track of your moving receipts so you can take advantage of the moving expenses tax break.

NOTE: You cannot deduct any moving expenses that are paid for by your employer — that means any costs covered by reimbursements from your employer. Additionally, keep in mind there are special rules for the moving expenses tax deduction if you are self-employed, married filing jointly, or a member of the armed forces.

Claiming the Moving Expenses Tax Deduction

To claim this tax deduction, your moving expenses should be figured on IRS Tax Form 3903 (Moving Expenses) and deducted as an adjustment to your income on IRS Tax Form 1040 (U.S. Individual Income Tax Return). Attach Form 3903 to the 1040 Form that covers the year in which you moved. You do not have to complete or submit a Schedule A to claim the moving expenses tax deduction.

According to the IRS, you should not file Form 3903 if all of the following apply:
• You moved to a location outside of the United States in a previous year.
• You are claiming only storage fees while you were away from the United States.
• Any amount your employer paid for the storage fees is included as “wages” in Box 1 of your IRS Tax Form W-2.

For More Information

For more information about the moving expenses tax deduction — including deductible and nondeductible expenses, special rules, and moves to locations outside the United States — please see IRS Publication 521 (Moving Expenses).

Elizabeth Rosen grew up near Boston and comes from a family of financial planners. She attended Carnegie Mellon University in Pittsburgh, Pa. where she studied professional writing. After graduation, Elizabeth moved to San Francisco where she worked for several years as the senior writer/editor and content manager for an online company. She now lives in Los Angeles working as a financial writer for numerous websites and print newsletters.

Read More
VIEW COMMENTS

There are no comments yet. Be the first to post your thoughts. or Register.

The Latest News Headlines

  • With half of the debate completed in the U.S. Senate on a House-passed bill to overhaul the Obama health law, Republicans have yet to reveal the details of what may be the only GOP option that can get a majority of votes, a streamlined measure which would change only a few provisions of current health law. “I don’t know what the “skinny” repeal looks like,” said Sen. Bob Corker (R-TN) to a group of reporters, as he acknowledged doing the bare minimum on health care might be about the only way to keep GOP options open on changes to Obamacare. “What you’re really voting on is to try to keep the discussions alive between the House and Senate,” Corker told reporters. Corker says 'content' of skinny bill not the point, rather it is 'forcing mechanism' for conference with House — Peter Sullivan (@PeterSullivan4) July 26, 2017 The way the “skinny” Republican option has been described in recent days is this: + Zero out the tax penalty on the individual mandate (note – this does not “repeal” the mandate – it just reduces the penalty to $0). + Zero out the employer mandate penalty + Repeal the medical device tax. But there were rumblings on Wednesday that the details of the plan would have to be fiddled with, leaving GOP Senators in the dark on what they might be voting on late on Thursday night, or Friday. McCain, with his usual sass, on where he's at with skinny repeal: 'It changes every hour, how can I judge it?' — Emma Loop (@LoopEmma) July 26, 2017 “I want to see what it says; I don’t know what it says – no one knows what it says yet,” Corker said. “All of this right now is procedural setup to get to an end that none of us are certain what it’s going to look like,” said Sen. Johnny Isakson (R-GA). “I’d rather comment when we see it actually formulated,” said Sen. Shelley Moore Capito (R-WV) of the “skinny” Senate bill. Down at the other end of Pennsylvania Avenue, President Trump was continuing to press GOP Senators for action, using his platform on Twitter to make one more direct appeal on Thursday morning. Come on Republican Senators, you can do it on Healthcare. After 7 years, this is your chance to shine! Don't let the American people down! — Donald J. Trump (@realDonaldTrump) July 27, 2017 But as the day began, it wasn’t clear whether there would be 50 Republican votes for any GOP health plan in the Senate – skinny or not. For seven years, many Republicans and conservative groups have pushed a story line that wasn’t completely true about the Congressional debate on the Obama health law – that few hearings were held, that the bill text was kept a secret until the bitter end, that the House and Senate votes were done in the middle of the night, and more. Having covered the legislative battle over the Obama health law, many of those criticisms weren’t entirely accurate – but the irony right now is that the GOP may be following a health care script in 2017 which mirrors many of their own complaints from 2009 and 2010.
  • Today, Governor Rick Scott announced that he will propose $30 million in pay raises for state law enforcement agencies. Last month, Governor Scott signed a bill to  provide a five percent pay raise for Florida’s law enforcement officers. This $30 million would double that investment and be used to reward current sworn state law enforcement officers and continue to attract qualified officers. “Our state law enforcement officers face danger every day, and they have protected our communities during some of our state’s most challenging times,” Scott said. “ I was proud to stand with the Florida Senate and Florida House this year to fight for the well-deserved five percent pay raise for sworn state law enforcement officers, but we cannot stop there. We must do everything we can to recognize our law enforcement and work to ensure that our state can recruit hard-working law enforcement officers to build on Florida’s 46-year crime low.” The Governor will announce his entire recommended budget before the beginning of next year’s legislative session. 
  • It's almost that time of the year again--- football season.   The Jacksonville Jaguars have announced their 2017 training camp schedule, which includes 10 practices open to the public.   The training camps kick off with three open sessions on Thursday, July 27, Friday, July 28 and Saturday, July 29. However, we're told Saturday’s practice on July 29, is open exclusively to Jags365 Season Ticket Members.   If you wish to attend the open sessions, which will take place at the practice fields adjacent to EverBank Field, you should register online at www.jaguars.com/trainingcamp.   The schedule includes the following dates:    Thursday, July 27                    Training Camp Practice                     10:30 a.m. – 1 p.m.   Friday, July 28                  Training Camp Practice                    10:30 a.m. – 1 p.m.   Saturday, July 29                     Training Camp Practice (open to Jags365 members only)                     6:30 – 9 p.m.   Monday, July 31              Training Camp Practice               10:30 a.m. – 1 p.m.   Tuesday, August 1              Training Camp Practice               10:30 a.m. – 1 p.m.   Wednesday, August 2            Training Camp Practice              10:30 a.m. – 1 p.m.   Thursday, August 3             Training Camp Practice              10:30 a.m. – 1 p.m.   Friday, August 4            Florida Blue Family Night Scrimmage at EverBank Field               6 – 8:30 p.m.            * Registration to open at a later date.   Monday, August 14          Joint practices with Buccaneers           10 a.m. – 1:05 p.m.   Tuesday, August 15           Joint practices with Buccaneers             10 a.m. – 1:05 p.m. For more information, visit jaguars.com.
  • One person is dead and seven others were injured after a ride malfunctioned at the Ohio State Fair on Wednesday. >> Ohio State Fair ride accident: 5 things to know about the Fire Ball ride The Associated Press reported that a swinging and spinning amusement park ride called the Fire Ball malfunctioned on the opening day of the fair. People were thrown into the air following the malfunction. At least seven people were injured. >> Read more trending news Battalion Chief Steve Martin, a Columbus Fire Division spokesman, said some or all of the victims were reported to have been thrown from the ride, according to The Columbus Dispatch. Martin told the AP that five of the seven people reported injured were in critical condition and two were in stable condition at area hospitals. The person who died, a man, was one of the people thrown when the malfunction occurred, Martin said. Ohio Gov. John Kasich said in a statement that he is “terribly saddened” about the accident and ordered fair rides were shut down pending additional safety inspections. The Ohio State Fair tweeted a statement about the incident early Thursday. The fair announced it will open gates at 9 a.m. Thursday, and other activities will resume as scheduled. 

The Latest News Videos