Tax deductible moving expenses to consider
When the time comes to pack your belongings and relocate, you naturally look for ways to make it more affordable. And one of the ways of doing so is through tax deductions. But, in order to do so, you need to familiarize yourself with tax deductible moving expenses. That way you will be able to properly assess whether or not your relocation is tax deductible. And what is included in that deduction? Are moving services NH tax deductible? What about gas for your car? Let’s find out!
Tax deductible moving expenses before up until 2018
Up until 2018, the cost of your move, packaging, and shipping was tax-deductible. And all you had to do is fill out a 3903 form in order to get your moving expenses deducted. But, since then, The Tax Cuts and Jobs Act (TCJA) eliminated that possibility for most taxpayers. It’s in effect starting with the 2019 tax year. Fortunately, some taxpayers are exempt from this act. And if you qualify, you will be able to count on tax deductible moving expenses. But it’s only limited to the members of the Armed Forces.
Tax deductible moving expenses for members of the Armed Forces.
From 2018 and onward, the tax-deductible moving expenses apply only for the members of the Armed Forces. And if you are on active duty you can claim moving expenses starting from the tax year 2018 and going forward. This can include hiring movers Plaistow NH for moving from your home to your first post. Or from one post to another. It also covers your relocation from your final post to your home. But you can not claim any expenses that are reimbursed by the government. And you only have a year to claim your moving expenses.
Tax deductible moving expenses cover your family members as well
Any moving expenses associated with the members of your household are also covered. That means that your spouse and dependents can also claim tax deduction in most situations. And it also applies to them if they must relocate without you because of extraneous circumstances. So that’s something that you can subtract from your moving quote. And which will help your family members relocate if they need to. It’s a great benefit in case something ever happens to you.
What does tax deduction cover?
There’s a certain set of rules when it comes to tax deductible moving expenses. They include the costs of moving the contents of your household. So you can hire quality movers Bedford NH for your relocation. And still get a tax deduction for their services. It also covers lodging while moving. But it does not cover expenses for meals. Those are the costs that you would incur anyway even if you weren’t moving.
Another important thing to note is that your moving expenses must be “reasonable”. The definition of “reasonable” is vague. But as long as you are honest and fair, you won’t have any problem with tax deductions. And you’ll be able to get your deduction with little to no trouble.