For many years, when Americans moved to a new location they were able to deduct the costs associated with the move from their taxes – as long as their move was focused mainly on changing jobs. The chance for savings allows many people to save money eventually on their move by lowering their tax obligation.
Unfortunately, there was a change in the regulations meaning that the expenses of moving to a new area to advance or start a career cannot be written off any longer. There is still a major exception for the country’s military, which is very important to remember and those who move from one permanent post of duty to the next, or they start or end their careers with one of the military’s five branches. However, those who are not part of the armed services cannot take advantage of the tax savings any longer.
You don’t need to worry about including moving expenses on your tax returns any longer – but you also cannot deduct them over the next several years. How long will the moving expense deduction not be there? Will it ever return?
The Internal Revenue Service has clearly stated that the moving expense deduction hasn’t disappeared forever, and instead it has been suspended from 2018 to 2025. Although that is a very long time to wait for its return, it is a bit of good news that you can keep in mind for the future. Moving expense reimbursement also can not be excluded any longer when you are calculating gross income for your income taxes during the same time period. Those benefits might become available once again in 2025 or the current tax laws could potentially be revised again.
Although federal taxes do not offer financial relief any longer for moving for work except for people who are in the military, it is very important to note that for state taxes that is not necessarily the case. Depending on the area you live in and the place you are planning to move, you might be able to save some on your state taxes.
With this one kind of potential savings in mind, call and let’s discuss ways that you can spend less money and recoup moving costs even though there is no longer a federal moving expenses deduction. Burnett’s Moving Services has your next move covered.