For example, if you regularly meet clients or customers in your home office, you can deduct the cost of repairs and maintenance - even landscaping - to the home that make it more presentable. īut if you already have a portion of your home set aside exclusively for business purposes, then you have the right to take as many deductions as you deserve.
People get into trouble when their bedroom doubles as their graphic design studio, or they work from home a couple of days a week because the commute is too long. If not, then it needs to be a place set aside exclusively for business purposes. Ideally, it's a separate structure from the living quarters of the house. A qualifying home office is a part of the home that is used "exclusively and regularly" as the principal place of business. Instead of itemizing, you can opt for taking a standard deduction of $5 per square foot of home office space, up to 300 square feet.Īgain, the IRS is a stickler on this one.
Utilities (electricity, heat, water, gas, internet service, telephone service, etc.).If you're self-employed and work from home, then you only had to move 50 miles away, which can be as close as the neighboring city or town. So if you used to drive 30 miles (48 kilometers) to work, the new location had to be at least 80 miles (129 kilometers) from your old home. First, the distance test: If you moved for a new job - or even to find a new job - the new location must have been at least 50 miles (80 kilometers) farther than the distance of your old commute. If you are able to amend a past income tax return from 2017 or earlier, note that the IRS applied two basic "tests" to determine if you could deduct moving expenses: distance and time. See the Instructions for Form 3903 for more information. Armed Forces can still deduct unreimbursed moving expenses from both domestic and foreign moves. If you are able to amend a past return from 2017 or earlier, you could still take the deduction for qualified moving expenses.Īlso, active duty members of the U.S. But that only applies to tax years 2018 and beyond. The 2017 Tax Cuts and Jobs Act essentially eliminated moving expenses for most federal income tax filers. TurboTax has you covered and will be up to date with the latest tax laws.The IRS uses time and distance to determine who qualifies for the moving expense deduction. Don’t worry about knowing the new tax reform law. TurboTax W-4 Calculator can help you easily figure out your withholding allowances, whether you want to boost your tax refund or your take-home pay. You can review your withholding to see if enough is being withheld from your income when taking into consideration the additional amount being added to your income. If your employer is footing the bill for your move, take into account that the amount paid by your employer and any reimbursement may increase your tax liability. If you are not active duty military and your employer is paying for your move, your employer will include what it pays for your move as well as reimbursements you receive from them as income reported on your W-2. Of course, your employer won’t be withholding income taxes from that income, since there’s nothing to withhold from. Those moving expenses include travel and lodging to the new location for you and your family, moving household goods, and shipping cars and pets. Active military members also don’t have to pay tax on qualified moving expense reimbursements, as long as the move is to a permanent change of station due to a military order.Active duty military can still deduct qualifying moving expenses if they don’t receive reimbursement from the government for the move.The new law applies to civilians, but not to military personnel who are relocating.Your employer, however, can still reimburse you for your moving expenses.Beginning in tax year 2018 (the taxes you file in 2019) the cost of those boxes, the moving van, the people you pay to load and unload them and other previously tax deductible moving expenses paid out of pocket are no longer tax deductible under the new tax reform law that was passed at the end of last year.Here are a few things you should know about moving for a new job since the new tax reform law passed: If that’s you, congratulations on embarking on your new adventure! Are there moving boxes in your future? Summer is a popular time to move and many are moving miles away to take a new job.
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