Moving Survival Tips Series: Tax Deductions

Are you moving this summer,  next month,  or next week?  Don’t panic,  we at FlatRate Moving® are here to help!

With Tax Day coming up on Monday April 15th (did you file already?) did you know you might be able to deduct some of your moving expenses from your federal tax return?

The first question is did you move in 2012?

If yes,  do you pass the “Distance Test”  and “Time Test”  according to the IRS?

The “distance test”  is defined as “your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home.  If you had no previous workplace,  your new job location must be at least 50 miles from your old home.”

The “time test”  is defined as  “If you are an employee,  you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location.  If you are self-employed,  you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location.  There are exceptions to the time test in case of death,  disability and involuntary separation,  among other things.”

Do you serve in the armed services and moved “due to a military order and permanent change of station?”  If yes,  then you don’t need to satisfy the “distance or time tests.”

Make sure to download and review Form 3903 and the IRS website for Topic 455 — Moving Expenses.

Let’s review,  if you download Form 3903 and read more from Topic 455 — Moving Expenses from the IRS,  then you might be able to deduct moving expenses from your 2012 federal tax return!  Well,  what are you waiting for?

For more information please visit www.FlatRate.com or give us a call at 212-988-9292.