TIPS FOR TAXPAYERS WHO MOVE

Although some of the old deductions no longer apply, the good news for taxpayers is that it is easier to claim deductions for moving expenses. This is due to the fact that moving expenses are considered to be a direct reduction of adjusted gross income, as opposed to an itemized deduction subject to special limits. However, to qualify for the deduction, the taxpayer's new job location must be no less than 50 miles farther from the former residence than the old job was. For example, a taxpayer that used to work eight miles from home, must be at least 58 miles from the previous residence in order to qualify for the moving expenses deduction.

Still, there are some considerations that taxpayers planning a move need to bear in mind. They can only deduct the cost of moving their household goods and possessions, and the cost of travel (excluding meals) for themselves and their families from the old home to the new home. In addition, expenses such as house-hunting trips, temporary living expenses in the new location, and costs of selling the old house and buying a new house are no longer deductible.



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