Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
Moving to a new place can be a stressful and overwhelming experience for everybody. Did you know those pricey moving expenses could be tax deductible? Here are five ways to make sure your expenses are eligible for a tax deduction.
Moving to a new place can be a stressful and overwhelming experience for everybody. Did you know those pricey moving expenses could be tax deductible? Here are five ways to make sure your expenses are eligible for a tax deduction.
You’re on the clock
Tax deductions for relocation only apply for moving because of a new job or change in residence due to a change in job location. For example, you landed a job after college in California and are moving there from New York, or got a job promotion and the company is relocating you to another office. Moving from snowy Minnesota to Florida to avoid the bone-chilling winters won’t get you a tax break. Also, your expenses must be registered with the IRS within one year of the move, otherwise you risk getting the expenses ineligible for tax deductions.
Stick around
In order to be eligible, you must work full time for no less than 39 weeks during your initial year upon moving. Note, you don’t need to work for the same business for 39 weeks. To add, you may work 30 weeks, take a few weeks off, and then complete the other 9 weeks. The work duration does not need to be consecutive.
Get some distance
Your parents or significant other might not approve, but make sure to move 50 miles or more from your old residence or job in order to qualify for the tax write off.
“Come on in, We’re open!”
The rules to qualify for a deduction are a little different if you are self-employed.
The IRS states: “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 after you arrive in the general area of your new job location.”
Don’t abuse it, or you’ll lose it
While it’s a fact you can write off a number of expenses, don’t go too crazy. Pay attention to the details of the tax deduction by reading the IRS Publication 521 on moving expenses. For example, you can deduct the cost of travel moving to your new residence but not the cost for your new driver’s license.
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
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