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Tax Deduction Consulting: Relocation Westbrook ME

There was a time when people tended to stay in one place much longer and the retirement party where the worker was getting a gold watch for 50 years of service was not uncommon.

Michael John DellOlio (RFC®), JD, MBA
(207) 294-0401
16 Middle Street
Saco, ME
Company
Michael J. DellOlio & Associates, L.L.C.
Qualifications
Education: B.S.,MBA,J.D.,NASD Series 6,7,24,63,65; Maine Insurance License
Years of Experience: 24
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, BuySell, Compensation Plans

Data Provided by:
Scott Associates
(207) 772-0441
12 Revere St
Portland, ME
 
H & R Block
(207) 773-0221
252 Saint John St
Portland, ME
 
H & R Block
(207) 775-1972
400 Maine Mall Rd
Portland, ME
 
Brown Barry J
(207) 879-7000
22 Free St Ste 301
Portland, ME
 
Johnson Virginia M
(207) 772-2322
686 Brighton Ave
Portland, ME
 
Liberty Tax Service
(207) 828-4829
694 Forest Ave
Portland, ME
 
H&R Block
(207) 541-1981
629 FOREST AVE
PORTLAND, ME

Data Provided by:
Hutnak Stephen A LLC
(207) 772-1600
100 Middle St Ste 401
Portland, ME
 
David Thomas & Assoc
(207) 871-0123
477 Congress St Ste 1005
Portland, ME
 
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Tax Deduction Consulting: Relocation

Relocation Tax Deduction

Americans are becoming increasingly mobile all the time. Strangely enough, the IRS seems to be encouraging this mobility as the relocation tax deduction is one of the most liberal of all deductions.

There was a time when people tended to stay in one place much longer and the retirement party where the worker was getting a gold watch for 50 years of service was not uncommon. Today, people seem to be much more mobile and job hopping is the norm. Since we tend to blame just about every other woe on the IRS, we can suggest that they might be the culprit here as well. The relocation tax deduction rules are some of the most liberal and surprising of all tax deductions.

The IRS allows a tax deduction for any moving and relocation expenses that are work related. The deduction is claimed on IRS Form 3903 and transferred directly to "Adjustments to Income" on the form 1040. Although you have to use the long form 1040, you are not required to itemize any other deductions. You do not have to file a Schedule A or worry about such things as percentage-of-income thresholds or deduction phase outs due to higher income levels.

The IRS imposes only two tests or rules to insure that you are legit in your move. The first is a distance requirement. The move has to involve a new work place that is at least 50 miles from your previous residence. Note that this requirement is measured from your new work office to your previous residence and not between the old and the new residence. The second rule is a time requirement. The move must be made within one year of starting the new job and you must actually work a total of 39 weeks during the first 12 months of your new employment. The weeks do not have to be consecutive.

The deduction covers the cost to move your household goods and your personal property. It also includes lodging and travel expenses. The lodging can be in the area of the old home before the move and in the area of the new home after the...

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