Moving can be extremely expensive, which is why any little bit of extra money you can summon up is extremely helpful. Fortunately, federal, state, and local governments often offer tax breaks to individuals for moving. In today’s article, we’re going to look at what a tax break is and several tax breaks that you can gain from moving.
What Is A Tax Break?
Similar to what its name suggests, a tax break allows individuals to avoid taxes under certain circumstances. There are multiple types of tax breaks, including tax breaks that tax a lower portion of your income or allow you to receive a direct deduction. There are several tax breaks that you can receive from moving. Here are four of them:
4. Miles Write Off
A common write-off that you may be able to claim is a miles write off. Essentially, this tax write-off decreases the amount of taxes you need to pay for certain commutes. Depending on whether you are driving to move, driving for business, or driving for charity, there are different tax write-offs.
In order to be eligible to receive these write-off’s, there are two things you must do. First of all, you must keep accurate records of how many miles you drive. Next, you must report this data to the IRS in order to potentially receive the tax write-off.
3. Donating Belongings
Another excellent way you can receive tax breaks is by donating your belongings. If you are moving, it may be a perfect time to donate some of the belongings that you don’t typically use. Before you move, we recommend separating your items into three groups; a keep, donate, and throw away pile. Whichever items you want to donate, take them to a local charity group such as The Goodwill.
Once again, you must record the items that you’re donating, and report them to the IRS.
2. Storage Expenses
Next up on the list, it is possible to report your storage expenses for a potential tax break. When you’re moving, it is likely that you have some type of storage expenses. If so, you should try to apply for a tax write-off.
First of all, you must keep track of your storage expenses. From there, you must report this information to the IRS to potentially receive a tax break.
1. Travel Expenses
Finally, another tax write-off you can apply for when moving is a travel expense write-off. Traveling to your new home can be extremely expensive, which is why the government offers tax breaks to certain individuals.
All that you have to do is report the various travel expenses that you accumulated. From there, you must report this information to the IRS.
Hopefully, this article has provided you with some valuable information about what tax breaks are and how you can earn them. If you’re moving to a new area, conduct some thorough research into potential tax breaks that you can earn in the area.