These Aren't Your Parents' Taxes (Part 3)– Moving Expenses
The Top 10 Things for 18-25 Year-olds to Know About Taxes
Tip 4 can be a little confusing, but the potential benefit to you is pretty nice. And, I’ve tried to put this in the least legal (or boring) words possible:
4) Moving Expenses
Did you move to live near your new job? Did the move cost you money? You might get to deduct those costs. Here’s the deal—if you moved to live near your first job, and your new workplace is at least 50 miles from your former home and your new employer didn’t pay for your moving expenses (costs of moving household goods/ travel expenses: lodging but not meals) then you get to deduct those moving expenses, which reduces your income! If you’re making the move because you’re changing jobs, the distance between your new job location and your prior home must be at least 50 miles more than the distance between the old job location and prior home. Stop and re-read that if you think it may apply to you. It’s worth it.
Next time–How an Individual Retirement Agreement (IRA) can help you in more ways than one.