Tax Deductible Moving Expenses in the Phoenix Valley
We are coming up on tax season and thought it would be a good idea to ensure that our clients and customers had the best tools possible to tackle this tax season with ferocity. A to Z Valley Wide Movers strives to make your Phoenix move the best it can be, and for us that includes making sure you get the most out of your moving company whether that be tips and tricks or that be you choosing us to provide to you the best moving experience in Phoenix.
In some instances, you can deduct moving costs on your annual tax return. Your Mesa moving company is dedicated to make sure you get the most of your hard earned money and that means knowing what moving expenses are considered eligible. While most moving companies don’t readily share this information, A to Z Valley Wide Movers wants you to be prepared as possible for your Phoenix, Peoria (or out of state) move.
In order to be eligible for these qualifications you must have moved as it relates to a new job. If you have moved inner-city, state or country, any of these situations qualify you to claim your expenses on your tax return. The good news is that you can claim any of the costs that you incurred during such a move. This could mean gas in your truck or moving van and the cost of boxes and packing materials.
Additionally, you can claim short term storage, lodging if you are unable to stay at the home while unpacking and standard mileage gained on vehicles used during the move. These things can add up quickly for the average family moving across the Valley. Being able to claim these things on your return means less stress and potentially a reason to look forward to completing your inevitable tax return this year.
When moving in the Peoria area, moving expenses go farther than just boxes and tape (although you are absolutely able to claim these things as well), and can include the cost of traveling to the new location for both you and the family members that are along for the ride. Not only are the tax deductible moving expenses gas and mileage, but they can include oil, parking fees and highway tolls. You are able to the standard mileage rate when calculating these expenses to claim on your tax forms. For even longer distance moves the IRS allows you to claim plane tickets or even train tickets to get you to your new location.
The things that you are unable to claim as deductions are minor when in the grand scheme of things, this can save you a hefty deal of money, and those include meals during the travel to or from your new residence and the stops along the way, and house hunting costs itself during travel to the new location. House hunting costs may be defined as a realtor’s fees, location services, or gas and maintenance on your vehicle while only looking at homes. You are unable to claim any expenses that your current or future employer may have reimbursed you for, and those would be indicated in box 12 on your annual W-2. If there is no amount within this box, add up those expenses and claim them for yourself.
In order to make sure you qualify for such a deduction there are some things that you need to ensure. Firstly, the time of your move has to be closely enough related to your new employment start date. The IRS requires that you work full time (39 weeks within the first 12 months of being employed there) in order for these expenses to qualify in your deductions. There is an exception to this tax deduction eligibility, which states that if you are to start your new job months before your family moves compared to starting within the IRS’s given timeline to qualify, you are still in the clear. Keep in mind that in order to meet these requirements your new job must be at least 50 miles away from your previous home. For many moving in the valley this is an easy requirement to meet. In order to utilize this type of claim you must fill out a Form 3903.
Your moving company in Mesa wants to help you in as many ways as possible, and that includes knowing the most important tax dates. Visit the IRS’s website for a complete list and mark your calendars for April 15th. Specifically the IRS’s publication 521 will explain in further detail just what qualifies you for deductions or not, and the ways in which to make the most of your long distance move.