Moving can be one heck of an expensive adventure. To make matters worse, the more you complicate the move the bigger the expenses are. But don't fret! It is not all that gloomy. Fortunately for you, we are going to discuss something called tax deductible moving expenses. What are these? Basically, if you moved in 2017 you are most likely entitled to a deduction of some of the costs. Rest assured, this does not mean that all of your costs will get a tax deduction. Only some of them. But still, every bit helps, right? On the downside, this will mostly revolve around those who are facing a work-related move. This means that, even if you do not itemize your deductions, you still might be entitled to some.
So, not everything really qualifies. Still, each bit that does is of much help. The biggest impact that might significantly assist your budget is the deduction for the packing and shipping of all your household goods and personal property. This expense is, in the real world, as expensive as you think it is. And then some. The amount of money you will potentially save from this is incremental! But, you can save on other things as well. In order to do so, try to get free moving boxes in NYC. You will not believe how much money you can save on boxes.
Make sure you know which moving expenses qualify for a tax deductionAnother cost that falls under tax deductible moving expenses is the expense of travel and lodging. This is of incredible importance for those facing a long distance move. The amount of money that goes against travel and lodging expenses would make your head spin. Maybe on paper, it doesn't sound that bad but waits until you actually dwell into it. You'll see a whole new world of pain.On disclaimer, meals that you might have on the road are not deductible as a moving expense.
Tax deduction for certain moving costs can help your budgetSo, let us invent a short scene of a long distance move. During this move, you will be moving across two states, with your family as well as your belongings. The reason for the move is of business nature.To conduct this long distance move you will have to:
You need to understand that these are two distinct frontiers that you will be tackling. First, the transportation of your belongings, which will most likely not happen in one run. Second, the transportation of yourself and your family.The first is the less challenging part, but the more expensive one. Finding an affordable moving agency in NYC is not an easy task. You will most likely fill two or even three trucks, that will have to pack up all your things (for which they will need at least a couple of days) You can speed up this process a little bit if you get packing and unpacking services NYC. Furthermore, if the truck drivers cannot reach the final destination in one go they will have to find storage solutions as well as accommodations for themselves.For the latter, you will need to find accommodations for yourself and your family on the road. Consider it even more expensive if it is a two or three-night long adventure. All of this costs money. And it is not a cheap adventure at that. Now imagine all these obstacles and the XY amount of money you have to pay for them. Count that money and imagine a certain percentage of that money returning to you. Sounds good, doesn't it?
In order to qualify for these, you need to fit in a few things. First, the move you are conducting has to have happened due to business reasons. An example is a relocation that you are 'forced' to do because of your new job. Or existing job that has moved elsewhere.Second, you have to have that documented. Your word for it will not be sufficient. This is something your employer can help you with, and they are already well into the whole ordeal. So the best thing you can do, in order to save time, is to reach out to your employers and have them help you out with all the necessary forms.This will then go through the hands of The Tax Cuts and Jobs Act since TCJA is the one who dictates the rules of the game.
There are some basic rules or rather prerequisites that you need to meet in order to fully qualify. Some of the most basic ones are:
You need to fulfill some requirements in order to get a refundIf you meet these requirements you are more than qualified to receive your tax return. And you will be more than happy to do so. So make sure you don't skip it because it makes a difference in everyone's budget.