Some cities have more job opportunities than others. According to Indeed’s list of the “Best Cities For Job Seekers 2017”, Miami, FL is the place to go. The city ranks the highest in work-life balance, job security and has a good number of job postings. If you’ve been pounding the pavement with little results, it may be time to pack your bags and find a new place to call home. As long as your move is work-related, you may be able to deduct expenses on your next tax return.
Time and distance tests
In order for your moving expenses to be deductible, they must meet three criteria.
1. The moving expenses must be incurred within a year of starting your new job.
2. Your new job location must be at least 50 miles further than your old job and residence. If you used to live 2 miles from your job, your new job needs to be at least 52 miles from your old home.
3. You must be a full time employee or self-employed in your new area for at least 39 weeks of the first year you move. If you need to file a tax return before you hit your mark, you can still claim the deduction as long as you expect to meet the requirement.
When you’re moving to a new place, it may take multiple trips to move all of your belongings. Unfortunately, you can only deduct the expenses for one trip for you and your family. Acceptable expenses are gas, hotels, parking fees and tolls. Meal expenses are not deductible.
Packing & shipping
Buying boxes and having your belongings insured can get expensive, let Uncle Sam ease the load. Whether you enlist the help of family members or hire a moving company, your packing and shipping expenses are deductible. You’re even allowed to deduct the cost of keeping your items in storage up to consecutive 30 days.
You can deduct expenses for disconnecting and connecting your utilities.
The cost of selling your home, buying your new home, or breaking or entering a lease are all nondeductible.
If your employer reimburses your moving expenses after you claimed them on your tax return, the payment must be reported as taxable income on your next tax return.