JK Harris Offers Advice on Moving Deductions

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JK Harris advises taxpayers they can earn credit for moving expenses.

As summer is beginning to wind down, kids are making their way back to school and many American families are getting settled in to new homes.

Summer has become a very popular time for families to move in the United States. If you recently moved due to a recent job transfer, you may be entitled to deduct some of your moving expenses.

"Depending on the time and distance tests, you may be able to deduct certain moving expenses," said Ralph Havens, Director of Professional Services for JK Harris and Company and an Enrolled Agent for the past 14 years. "The distance test says that your new job must be at least 50 miles further from your new home than your old home was from your old workplace. For example, if your old home was 5 miles from your old workplace, then your new job must be at least 55 miles away from your previous residence."

"The time test requires that you work at your new workplace at least 39 weeks during the first 12 months after your move," said Havens. " If you are self -employed, you must work full time in the area of your new workplace for at least 39 weeks during the first 12 months and a total of 78 weeks during the 24 months after you move to ensure you meet the IRS' time test guidelines."

If you meet the distance and time tests, you are eligible to deduct reasonable moving expenses, according to the IRS. Reasonable moving expenses include the cost of moving your household goods, the cost of moving your car (18 cents a mile, parking and any tolls you incur), lodging, and the expense of storing your goods for 30 consecutive days, if necessary. Taxpayers cannot claim any expenses that are reimbursements excluded from your income.

There are several exceptions to the time test that taxpayers should be aware of:

  • Your job ends due to disability
  • You are transferred for your employer's benefit
  • You are laid off or discharged for a reason other than willful misconduct
  • You are in the Armed Forces
  • You are filing taxes for a decedent

"Members of the Armed Forces are exempt from the time and distance tests if the move is due to a permanent change of station. Military members cannot claim any of the expenses that are covered for them by the government," explained Havens.

For more information on moving expense deductions, you can order Publication 521, Moving Expenses online at http://www.irs.gov or by calling 1-800-TAXFORM.

About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 425 locations nationwide by appointment only. The company also provides services for student loan debt, investment fraud, fee-based financial planning, tax return preparation, and audit representation.

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