Tax Tips for Moving on a Budget
Moving to a new city brings many challenges: one of which is paying for the trip. In the latest issue of Marriott Alumni Magazine we cover the costs of moving and mention a couple tax credits available to ease the burden. Bryan Stewart, assistant professor of accountancy, gives more tips on navigating those tax codes to make sure you still have some money left over after the boxes are all in.
According to Stewart, the main way to get your cash back is by utilizing the moving expenses tax deduction, which reimburses those who relocate for a new job.
“This could be a significant deduction, especially if you have a family and a lot of stuff,” he says.
Some people may overlook it if they aren’t itemizing their deductions, but Stewart says this tax deduction applies even if you don’t itemize. The government will reimburse you for all your moving costs, including things like packing tape or even a hotel stay the first night in your new city. Remember to save your receipts to help you keep your numbers straight.
“For everything that you do for tax purposes, you want to make sure to keep good records,” he says. “Record the miles you drove and the costs you incurred to buy things.”
Donating old things to charity will also ease your financial burden if you are itemizing. When donating, records remain key, especially for larger items such as appliances and vehicles.
It may be more paperwork, but extra money to fix up your new place or explore a new city will make the time worth it. Check out “By the Numbers” for more tips on saving money when you move, whether you’re going across town or across the country.