SOURCE: United Van Lines

February 25, 2009 10:57 ET

United Van Lines Offers Answers About Tax Deductions for Moving Costs

ST. LOUIS, MO--(Marketwire - February 25, 2009) -


DO YOU QUALIFY?

The moving experts at United Van Lines have compiled a check list to determine whether or not you qualify to deduct moving expenses on your federal income tax return. The following information is not applicable to moves before the 1998 tax year. Because federal laws change frequently, you always should consult the Internal Revenue Service or your personal tax adviser for the most current information about your particular situation.

If your move was the result of a transfer or new job, you may qualify if the following conditions are met:

1.  The change in job location required you to commute at least 50 miles
    (one way) further to work than if you had not moved.

2.  The move occurred within one year of the date you began work at the new
    location.

3.  You worked full time (for any employer) in the general vicinity of the
    new location for at least 39 weeks during the 12-month period following
    the move.
      --  If you were transferred, laid off or disabled before the end of
          the 39-week period, you still may claim moving expenses.
      --  If you are self-employed, you must have worked full time for at
          least 39 weeks during the first 12 months and a total of at least
          78 weeks during the 24 months immediately after you move.

WHAT CAN YOU CLAIM?

If you meet the three criteria above, you may qualify for the following deductions:

  1.  Household Goods
        --  Costs associated with packing and transporting personal
            belongings.
        --  Transportation of automobiles and pets.
        --  Costs associated with valuation (the carrier's liability for
            your shipment that you chose) and temporary storage of your
            items until they were moved to your final destination. You may
            only deduct up to 30 consecutive days of storage fees, starting
            the first day your belongings were collected.

  2.  Travel
        --  Personal, one-way transportation.
        --  Temporary lodging during the move.

If you are self-employed, you may deduct these expenses if you already have made specific arrangements to operate your business at a new location. There is no cap on the maximum deduction allowed for moving personal belongings or for a family's travel costs to the final destination.

Although certain moving expenses may be deducted on federal tax forms, it's important to be aware of nondeductible moving expenses, including:

--  Meals while moving;
--  Pre-move house-hunting travel expenses;
--  Temporary housing prior to moving into permanent housing;
--  Costs associated with selling, buying or leasing homes as a result of
    the move;
--  Deposits lost due to damage or neglected cleaning;
--  Deposits required when entering a new lease;
--  Home improvements;
--  New driver's licenses and automobile licenses;
--  Lost club membership dues;
--  Loss on a home sale;
--  Mortgage penalties;
--  Real-estate taxes (these costs can be listed as an itemized deduction
    on Schedule A); and
--  Refitted carpets and draperies.
    

PLAN AHEAD FOR TAX SEASON

During the moving process, collect all moving-related documents and receipts for tax purposes, including:

  Mover's Documents
    --  Bill of Lading
    --  Inventory
    --  Additional Services Performed form

Travel Expense Receipts
    --  Personal transportation costs (air, bus or train fares, and/or
        automobile expenses)
    --  Lodging

For a full explanation of deducting moving expenses, visit http://www.irs.gov/pub/irs-pdf/p521.pdf. To order federal tax forms and publications, call your nearest IRS office or (800) 829-3676. Questions may be directed to your local IRS office or the national office at (800) 829-1040.

Up-to-date tax information and assistance was provided by the Internal Revenue Service.

Contact Information

  • For further information:
    Jennifer Bonham
    (636) 349-2508
    Email Contact