You may be able to deduct the cost of your moving expenses. However, for you to deduct the costs, you have to meet the time and distance test. You will also have to move for work. If you move for any other reason besides work, then you won’t be able to deduct the moving costs.
Your new job must be at least 50 miles away from the place you live now. You also have to work in this area for at least 39 out of 52 weeks of the year. You can deduct the following expenses if you meet the time and distance test.
Moving Company Costs
If you hire one of the interstate moving companies in Lehigh Valley, then you can deduct the amount of money that you paid to hire them. Some moving companies will charge you one price for everything. Others will charge you individually for things like packing, moving supplies and the distance traveled.
Do-It-Yourself Moving Costs
Many people prefer to hire a moving company because it is the least stressful option. However, others prefer to do their moving. If you take care of your moving, then you can deduct the moving costs. Additionally, if you pay family members and friends to help you move, then you can deduct the amount that you paid from your taxes.
You will have to buy your packing supplies if you decide to move on your own. This includes things such as boxes, tapes, and blankets. The cost of these things can add up. Fortunately, you may be able to recoup the costs when you do your taxes.
Moving insurance is not something that you are required to have. It doesn’t matter whether you are moving or hiring someone to help you move. However, it is a good idea for you to have moving insurance. It covers you if your belongings happened to get lost, damaged or misplaced during the move. You can get released value protection or full protection coverage.
Released value protection is cheaper, but it only gives you minimal coverage. Full protection value will reimburse you for the total cost of replacing your damaged or missing items.
If you cannot bring everything with you, then you should use storage. You can deduct the cost of storage from your taxes. However, you are limited to just 30 days.
For professional moving services or other moving tips, contact Louderback today!