Taxes
Everyone knows moving is a hassle and can be costly; even Uncle Sam takes this into consideration come tax time. Assuming you pay taxes, you can deduct moving expenses, whether you choose to itemize your deductions or not.
To qualify for the moving deduction, you need to be moving to your new location for work, and your new job must be at least 50 miles farther from where you were living than your old job location.
For the full scoop, you can check the following resources:
Here's a rundown of how your move will affect your taxes. Keep good records of everything you spend and do during this period, it'll make your life that much easier come tax time the following year.
IRS Approved Deductions — "May I have a receipt please?"
First, is your employer reimbursing you for your move? If so, that's great, but the amount that you receive to cover your move expenses must be declared as income on your taxes for the year that you move.
If you're not being reimbursed, you can deduct your move expenses from your federal adjusted gross income. Deductible expenses include:
- Packing/crating and unpacking - cost of both services and materials
- transportation costs for moving your household - cost of moving company services, van rental. Also includes the costs of moving personal belongings from a place other than your old residence (i.e. mom & dads, your ex's place etc.)
- Getting yourself and your family (including pet moving costs!) to your new residence. Lodging during the journey is deductible, but not meals.
- Storage-in-transit - for 30 consecutive days
- Move Valuation (often referred to as insurance) - for 30 consecutive days
Charitable Donations
Luckily, the IRS also allows tax deductions for charitable donations of useable goods to non-profit organizations.
Make a list of all the things you're donating and their approximate fair market value (i.e. what you could sell it for at a yard sale or thrift shop). Keep this list along with the receipt/acknowledgement of your donation. Many organizations will schedule pick-ups of both furniture and other non-perishable household goods. For a list of contacts, check your local Yellow Pages under "Thrift Shops" or "Used Clothing."
For more tax information refer to IRS Publication 526 - Charitable Contributions, also available at
http://www.irs.ustreas.gov/prod/forms_pubs/formpub.html
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