How to Get Qualified For Tax Deduction on Last Minute Moving Expenditure
Last minute shifting is complicated, expensive, and strenuous both physically and mentally. But you might have to do it anyway. Hiring a last minute moving service can help reduce this headache considerably. You just have to instruct them and they will do what is required.
Hiring a moving service can be expensive sometimes, particularly if you were moving afar. Well, there are some ways to reduce the expenditure on last minute movers, such as by getting qualified for tax deduction on the moving expenditure. Here is how you can do that.
Tips To Get Tax Deduction on Moving Expenditure
Remember that not everyone is qualified for tax deduction on moving expenses. The criteria for getting qualified for a tax deduction on last minute shifting are determined by the Internal Revenue Service (IRS). They have set up two tests: distance tests and time tests. You need to qualify for both tests for any tax-deductible moving expense.
Distance Test Requirements
The major criterion in the distant test is that your new home should be at least 50 miles farther than from your previous work place was from your previous residence. You have to furnish these details in the form 3903 issued by IRS.
Time Test Requirements
As per the time test requirement, you should have worked 39 weeks (full-time) in the first 12 months after the shifting. It means you have to plan your move in advance so that you will be able to work 39 weeks in the same tax year.
The problem here is that the duration is not carried over from one tax year to the next. It means you have to fulfill the time test requirements in the same tax year itself. However, IRS gives some exceptions as well. You can pass the time test even if:
· You are transferred to a new place by your employer
· Your physical disability demands you to move from the current job location
· You are asked to resign from the job for reasons other than your misconduct
Under any of the above exceptions, you can pass the time test and get qualified for the tax deduction on the last minute shifting costs.
The tax deduction is applicable for most of the expenditure incurred during the last minute shifting, say, packing materials, shipping, travel costs, utility fees, etc. Nevertheless, you cannot claim tax deduction on hiring moving services if they are not licensed. Therefore, ensure to hire authorized last minute movers NYC to help you out with the shifting.