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Take some tax breaks for moving
WASHINGTON Feb. 18, 2011 You can write off relocation costs on your taxes, as long as the move is work-related, according to the IRS.
Some IRS-approved deductions for moving include the cost to move household goods and personal property, limited storage and insurance fees, and utility connection or disconnection charges, according to Bankrate.com.
The IRS also allows for some deductions with lodging and travel expenses near your new and former homes, as well as shipping costs for your car and even travel arrangements for pets.
Here are some tax filing tips for claiming move-related tax deductions, according to Bankrate.com:
Use the long Form 1040 to claim moving costs. Use Form 3903 to figure the costs.
You do not have to meet a percentage-of-income threshold for moving deductions.
Ensure you meet the distance test. The location of your new job must be at least 50 miles farther from your prior address than your last office. For example, if you lived 10 miles from your old job, your new job must be at least 60 miles from your old home before you can deduct moving costs. The IRSs distance test only considers the location of your old home and how far it is from your previous job not your new residence.
Check the time requirements. Moving expenses are deductible if they were incurred within one year of starting a new job. You also have to work full time at a new job for at least 39 weeks during the first 12 months.
Self-employed worker must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months.
Collect all of those moving receipts. To claim the deductions, make sure you have receipts that apply to costs for moving your property, storage and utility connections.
Source: Let Uncle Sam help pay for your move, Bankrate.com (February 2011)
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