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The nature of employment these days is such that you often have to move from time to time. If you have gone this process recently, there is some good news for you. You just might be able to claim some tax deductions related to it. The mere mention of the word moving sends a chill down my spine. It is my least favorite thing to do without a doubt. This is probably because I end up doing it more and more as do most of you for employment reasons. The simple fact is the old world days of working for one company in one town for thirty or forty years are long gone. Everyone changes jobs these days. In many cases, the optimal job you are looking for is often in another location. The federal government always seems to be about 20 years behind the times, but not in this case. It has acknowledge the changes in society and created tax deductions for people who move for employment purposes. There are a couple of tests that have to be passed before you can start claiming deductions. The first is the mileage test. Simply put, the location of your new job must be at least 50 miles farther from your former home than your last job. Let's look at an example. Assume I work a my horrible job which is 9 miles from my home. I take my new wonderful job which is located 109 miles from my home and I have to move. Since the difference is 100 miles, I can claim moving deductions. One test is never enough with the IRS. There is another test that requires you to work roughly ten months out of the twelve full time after the move before you can claim the deduction. The exact requirement is thirty-nine weeks in the 12 months. Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks. There will be a natural temptation to claim moving deductions, particularly if you are close to passing the tests. Don't. The IRS closely watches how taxpayers claim new tax deductions, so you don't want to get audited. So, what is deductible assuming you meet the tests? Well, the reasonable moving expenses you incur. These include the costs of moving household items and your personal effects as well as traveling expenses including lodging.
Article Source: http://www.articles4free.com
Aazdak Alisimo writes about relocation issues such as moving companies, truck rentals and more at MovingCompaniesforyou.com.
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