The most recent tax plan has eliminated the chance of an individual to apply a deduction for their moving expenses. Moving is an expensive decision because you will have to hire moving box company among other things. According to statistics released by , the average cost of moving within the same state is $2,300 while moving to another state will cost an average of $4,300. This is a big amount that not everyone can afford to spend.
Until the end of last year, there was a method to make the move affordable by getting a tax break. This was based on the previous tax code that allow deductions if the move is related to an individual’s employment. Not everyone can apply for the deduction though because there are criteria to take into consideration. For someone who qualifies, they will be able to deduct their payment to the storage, movers and other reasonable costs.
It was a very good deal until the start of this year because the recent tax bill does not include a number of deductions such as the cost of moving. From now on, deductions for moving will not be considered even if the move is related to the job. The suspension of the deduction will remain in place until 2015. Those who were able to move before the year ends last year are lucky because they are still legible for the deduction.
The moving cost deduction requires a number of criteria to be qualified:
- The new job location should have a minimum distance of 50 miles from the old home compared to the distance of the old job from the same house.
- You can claim your deduction once you have worked a minimum of 39 weeks within one year after moving. For self-employed, they must work a minimum of 78 weeks within two years after moving.
Those who were able to meet the criteria in 2017 can deduct the cost of hiring moving box company, storage unit, personal transport of the household and the cost of cardboard boxes and packing supplies.