What can you right off on your taxes

what can you right off on your taxes


Best Answer: "To qualify for job-related moving expense deductions, the move must be connected with taking a new job that is at least 50 miles farther from your old home than your old job was. If your former job was 10 miles away from your old home, for example, the new job has to be at least 60 miles away from that old home. Note that it does not matter how far the new home is away from your new job. If you are moving to take your first job, the 50-mile test applies to the distance from your old home to your new job location.

You have to work full time for at least 39 weeks in the first 12 months after the move. You also have to work full time at the new location for at least 78 weeks out of the first 24 months. (To pass these tests you must work in the new area, not necessarily at the same job for the required time; and if you lose your

job for reasons other than willful misconduct, the time test is waived.) You claim the deductions on your tax return for the year of the move even if you haven't yet met the 39- or 78-week test by the time you file. If it turns out you are not eligible, you should either file an amended return for the year or report as income on your next tax return the amount previously deducted as moving expenses.

Congress has limited the kinds of expenses that can be written off, but the lawmakers have retained what are probably the most common and the most valuable write-offs. When you qualify to deduct moving expenses, you can deduct the cost of moving your household goods to the new location and you can deduct the cost of moving yourself and your family—travel and lodging expenses—to the new home.

If you drive your own car, you can deduct 18 cents a mile for 2006 moves. You may also add the cost of parking and tolls to the standard mileage rate."

Source: answers.yahoo.com

Category: Taxes

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