Don't Miss This Deduction
If you had to relocate for a job, you might be able to write off your moving expenses.
I moved last year to take a new job. Can I deduct any expenses for moving or searching for a new job?
You can deduct moving expenses as long as your new job is at least 50 miles farther from your home than your old job was. For people starting their first job, the new workplace must be at least 50 miles from their old residence.
You'll be able to deduct the cost of packing, storage (within 30 days of the move), and hiring a moving company or renting a moving truck. You also can write off one-way travel expenses to your new home for everyone in the household -- including 20 cents a mile and parking fees and tolls if you drive.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You don't need to itemize to deduct these expenses. Report your moving expenses on Form 3903. For more information see IRS Publication 521 Moving Expenses.
You also may be able to deduct job-search expenses if you changed jobs within the same line of work. In that case, you can deduct the cost of printing and mailing résumés, job-hunting phone calls, employment-agency fees, and the cost of travel to attend job interviews, regardless of whether you got that job.
Job-search expenses, however, are considered miscellaneous itemized deductions (like employee business expenses and investment-related expenses), which means you need to itemize and such expenses are deductible only to the extent they exceed 2% of your adjusted gross income. For more details about these write-offs, see IRS Publication 529 Miscellaneous Deductions. You can't deduct job-search expenses for your first job.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
Six Tax Breaks That Get Better With Age
Tax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
By Kelley R. Taylor Last updated
-
Biden Proposes New Homebuyer Tax Credits
Tax Credits President Biden is calling for new middle-class tax breaks including a mortgage tax credit.
By Kelley R. Taylor Last updated
-
Will Florida Property Tax Be Eliminated?
Property Taxes A new proposal is raising questions about revenue generation in the Sunshine State.
By Kelley R. Taylor Published
-
States That Won't Tax Your EV
State Tax Most states impose additional fees on electric vehicles, but these states don’t penalize EV owners, and some also offer other tax incentives.
By Kelley R. Taylor Last updated
-
Tax Season is Here: Big IRS Tax Changes to Know Before You File
Tax Filing Tax deductions, tax credit amounts, and some tax laws have changed for the 2024 tax filing season.
By Kelley R. Taylor Last updated
-
Your Arizona Family Rebate is Taxable: What to Know
State Tax Thousands of Arizona families will need to report income from special child tax relief payments.
By Kelley R. Taylor Last updated
-
Families and Businesses Would Get Big Tax Breaks in Bipartisan Tax Deal
Tax Changes A new bipartisan tax deal could change the child tax credit, R&D expensing, and the employee retention tax credit.
By Kelley R. Taylor Last updated
-
Non-Refundable vs Refundable Tax Credits: What’s the Difference?
Tax Credits Refundable tax credits and non-refundable tax credits can be confusing. Here’s how they work and how each can help you when you file your tax return.
By Katelyn Washington Published