Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-01-2012, 12:13 PM
Junior Member
 
Join Date: Jan 2012
Posts: 1
Moved for Business

Hello, I moved from another state to take another job within my company, is this deductible? If so, I was given a relocation amount, that was given to me in "post-tax" dollars, meaning my YTD earning were much higher then they normally would have been. My questions are as follows;
1. I had to sell my car, at a loss, is that counted against the relocation amount?
2. Can I include everything needed to move out and move in (i.e. boxes, cleaning services, storage, moving trucks, purchase of new items for my new place, mileage)
3.What other items should I be bringing with me when I go to have my taxes prepared?

Thanks for any help you can lend!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-01-2012, 10:06 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
“I moved from another state to take another job within my company, is this deductible?”----->In general, yes;however, it depends. As you have moved because of a job, because you were relocated in your current job from another state, you can most likely deduct all of your moving expenses from your taxes during that tax year. In order to be eligible, you need to have moved at least 50 miles farther from your old home to your work, or if you are starting a new job, you must move 50 miles away from your old house.Secondly, you must work full time for at least 39 weeks after relocating in the job in another state.
“If so, I was given a relocation amount, that was given to me in "post-tax" dollars, meaning my YTD earning were much higher then they normally would have been.”----->Yes. The way your employer reimburses you for your moving expenses will have an effect on how much you are taxed for them. Certain types of reimbursment plans(accountable plan) are not included with your wages on W2 on tax forms, and are therefore not taxed(so, if you were fully reimbursed and the reimbursements were not included in your taxable income on W2.) As long as you get paid under what the IRS calls non-accountable plan, you will be taxed as part of your income on W2 and you can deduct your moving expenses on From 3903.The reimbursement is taxable to you , the employee and must be recorded as wages, salary and other pay and is therefore recorded in box 1 of Form W-2. Non-accountable plan reimbursement that is excess payments to an employee not returned to the employer is reported on your W2 and is taxable.


My questions are as follows;
“1. I had to sell my car, at a loss, is that counted against the relocation amount?”-----> No; you cannot deduct the loss.
“2. Can I include everything needed to move out and move in (i.e. boxes, cleaning services, storage, moving trucks, purchase of new items for my new place, mileage)”----->Your deductible moving expenses include the cost of transporting your family's personal effects to the new location. Whether you hire a moving company or rent a truck yourself, your actual expense is deductible. However, although you can include the labor costs when hiring movers, you cannot increase your deduction for the value of your own labor. You can also include the expense for transporting yourself and family members to the new location, which includes the cost of an overnight stay in a hotel on the way if necessary. You can ALSO deduct the cost of packing, crating, or otherwise preparing goods to be shipped. You can also deduct transport costs for pets or if you are shipping a vehicle. Utility connection and disconnection fees are also deductible. In the case of your storage costs, you can deduct up to 30 days of storage between the day you leave your last home in another state to the day you arrive in your new home in the new state.
“3.What other items should I be bringing with me when I go to have my taxes prepared?”----->As you satisfy the time and distance tests for purposes of claiming the moving expense deduction, Form 3903 requires you to report the expenses you incur to relocate.As long as the amount on Form 3903 line 4 is larger than the amoun t on line 3, you need to report the amount on 1040 line 7 as your taxable wage.
Please visit the IRS website here: http://www.irs.gov/pub/irs-pdf/f3903.pdf


Last edited by Wnhough : 01-01-2012 at 10:14 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lived in NJ for 6 months, 1099 from NE while in NJ, Moved to WA Permanently unsupak Income 0 04-10-2011 08:36 PM
Moved to a new state, how do I apportion my income tax? ghawthorne Income 1 02-02-2011 11:29 AM
I moved from AZ to WA before family did SanDiegoHB Filing Requirements 0 04-12-2009 12:45 PM
Moved House And Sold Land libby Homeowner Tax 3 02-03-2009 05:18 AM
How can I take advantage of business losses in my unincorporated business? larry Sole-Proprietorship 1 01-24-2008 06:15 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning