Climbing the career ladder can have many rewards – job satisfaction, recognition, influence, and six-figure salaries. However, many steps up the corporate rung could mean relocating to a new area, which can mean extra savings from Uncle Sam come tax season.
Executive search firm fees, postage, supplies, phone calls, and travel are all deductible under IRS guidelines. Moving expenses to the new position can also be deducted, just be sure to keep those receipts for your accountant.
Expenses related to a job search can be itemized if miscellaneous tax deductions exceed 2 percent of your adjusted gross income. There is no minimum for self-employed individuals.
Packing, shipping, insurance, storage, driving to your new home, lodging, travel, tolls, and utilities hook-up and cut-off costs – these are a few of the approved moving deductions the IRS recognizes. Moving expenses are deductible without having to itemize as long as you are moving to take a job and it is more than 50 miles (you’re required to subtract the mileage to your new home from your current commute).
Taxpayers must also be employed for at least 39 weeks in the year following the move (make it 78 weeks over 2 years if you’re self-employed).
For additional details, visit www.irs.gov.
