Moving expenses can be claimed as a reasonable cost of moving not only yourself but also your property. These costs include a moving van, a storage unit and temporary insurance used in your travel. According to the new norms of IRS, the taxes you will file in 2019 of the previous year (Tax Year: 2018) the moving expenses will no longer be tax deductible which it previously used to be except for certain Armed forces members.
As per the revised moving expenses, standard mileage rates for the use of a car, van, pickup or panel truck will be:
The vehicle expenses can be deducted as moving expenses of the members of the Armed forces:
A permanent change of station includes the following:
Use a separate form 3903 for each move, in case you qualify to deduct expenses for more than one move.
Spouse and Dependents
If a member of the Armed forces dies, deserts, or is imprisoned, a permanent change of station for the spouse or dependent includes a move to the following:
Your moves are treated as a single move to your new main job location, if the military moves you, your spouse, and dependents, to or from separate locations.
If you are moving due to a permanent change of station, you are liable to deduct the reasonable unreimbursed expenses of your move along with the members of your household.
Anyone qualifies as a member of your household if he meets the following criteria:
You can deduct expenses if it is not reimbursed or furnished in kind for the following:
You are not allowed to deduct:
You can deduct as car expenses either of the following:
You can add you’re parking fees and tolls to the amount claimed under any of the methods.
The members of the Armed forces cannot claim deductions for the following items:
The members of the Armed forces can complete the Form 3903 by taking the following steps:
1. You have to complete lines 1 through 3 of the form, with the use of your actual expenses.
2. You have to enter on line 4 the total reimbursements and allowances you received from the government for the expenses claimed on lines 1 and 2.
3. You should complete line 5. If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and Form 1040, line 26. This is your moving expense deduction.
A foreign move is a move or its possessions to a foreign country or from one foreign country to another foreign country from the United States.
In case of a move from a foreign country to the United States or its possessions is not considered a foreign move.
The deductible moving expenses under foreign move are as follows:
A. No, he is not liable to deduct such expenses.
A. You can include the following for-
A. Filing form 3903 is not required:
We hope that this guide helps you in understanding the Moving Expenses as per the new changes in the U.S. Tax Laws and helps the armed forces people in claiming benefits.