Sumter Movers Help You with Your Taxes
It’s tax season again—that time of year that puts a smile on some people’s faces but causes others to start getting a headache at the very mention of it. It seems that the people who don’t mind filing their taxes are the ones who have a knack for digging up every possible deduction and exemption, shrinking that big red “amount you owe” number and possibly even turning it into a tax return check. This year, our Sumter movers aren’t offering to sift through your financial records and file your taxes for you, but they may have something else to offer you: deductions of your 2015 moving expenses. Here are the first few things you need to know about claiming these expenses on your tax return.
Your Move Must Be Work-Related
The moving expenses deduction is intended to relieve the financial burden for people who are forced to relocate for work. That doesn’t necessarily mean that your employer relocated you for another position within the company, although that situation would also qualify. It can also mean that you moved in order to start a new job, or even to become self-employed in a new location.
The IRS verifies your work-related move by looking at your employment during the year following your move. If you work full-time (at least 39 hours a week) for the 12 months following your relocation, the IRS will accept the move as work-related. If you are self-employed, the full-time status must last at least 24 months instead of 12.
The rules are less stringent for military service members—all you need to do is show that your move was part of a change of station. If you used our Sumter movers to relocate your family to Fort Jackson, for instance, your expenses should qualify for the deduction. There are several other less common relocation situations that qualify as work-related moves; your tax professional can help you determine whether your particular situation is one of them.
Relocating across town usually doesn’t fall under the deduction category. Your new job location has to be at least 50 miles farther away than your old job—from the home you used to live in. That sounds a little complicated, but here is an example:
- You used to drive four miles to your office every day. Your new job, however, is 58 miles away from where you live now—that’s 54 miles farther away. Your move would qualify for the deduction’s distance requirement.
- If your new job is 25 miles away, your move would not qualify—your new job is only 21 miles farther away than your old job.
If you did not have a job at your old home, the distance requirement is simpler: The location of your new job has to be at least 50 miles away from the home you are moving away from.
Deducting Expenses for Sumter Movers
So, exactly what expenses can you deduct from your taxes? Costs for hiring moving companies in Sumter to help with your move are some obvious ones; they fall under the category of packing and shipping expenses. Travel costs are another major category. If you and your family have to spend a night in a hotel and eat meals on the road during your move, save your receipts! Those costs are more than likely deductible. Fuel costs are another big one to remember. Finally, there is a standard mileage deduction as well, so be sure to record your exact distance traveled. Remember, though, that if your employer reimburses you for any of your travel expenses (or payments for the services of Sumter movers), you cannot later deduct those amounts from your taxes.
Making the Most of Your Move
If you paid to have a team of Sumter movers help you with your work-related move, we hope that the deductions make this year’s tax season a little more pleasant for you! A good tax filing service will be able to help you understand what you can deduct and what you can’t. Or perhaps this information is more useful for you in the context of the future—when your job takes you to a new location, please call on us to provide a professional, friendly team of Sumter movers to relocate your family.
Reference: American Moving & Storage Association: http://www.moving.org/content.asp?contentid=168