Which States Allow Moving Expense Deduction
Moving to a new state can be an exciting and daunting experience. Whether you are relocating for a job opportunity, seeking a change of scenery, or simply starting a new chapter in your life, moving expenses can quickly add up. However, some states allow you to deduct certain moving expenses on your state tax return, providing some much-needed relief. In this article, we will explore which states allow moving expense deductions and answer some frequently asked questions regarding this topic.
States that Allow Moving Expense Deduction:
1. Arkansas: Arkansas allows taxpayers to deduct qualified moving expenses if the move is related to a change in employment or self-employment.
2. California: California allows moving expense deductions for military personnel and their families who are required to move due to a permanent change of station (PCS) orders.
3. Hawaii: Hawaii allows a deduction for moving expenses incurred within one year of starting a new job or business in the state.
4. Massachusetts: Massachusetts allows taxpayers to deduct moving expenses if they meet certain criteria, such as working full-time in the state for at least 39 weeks during the 12 months following the move.
5. Minnesota: Minnesota allows a deduction for moving expenses if the move is related to a job change that increases the taxpayer’s commute by at least 50 miles.
6. Mississippi: Mississippi allows a deduction for qualified moving expenses if the move is related to a change in employment or self-employment.
7. New Jersey: New Jersey allows taxpayers to deduct moving expenses if they meet certain criteria, such as working full-time in the state for at least 39 weeks during the 12 months following the move.
8. New York: New York allows a deduction for moving expenses if the move is related to a job change that increases the taxpayer’s commute by at least 50 miles.
9. North Dakota: North Dakota allows a deduction for qualified moving expenses if the move is related to a change in employment or self-employment.
10. Pennsylvania: Pennsylvania allows taxpayers to deduct moving expenses if they meet certain criteria, such as working full-time in the state for at least 39 weeks during the 12 months following the move.
Frequently Asked Questions:
Q: Can I deduct moving expenses on my federal tax return?
A: As of December 31, 2017, the moving expense deduction is no longer available on the federal tax return, except for members of the armed forces on active duty who move due to a military order.
Q: What qualifies as a moving expense?
A: Qualified moving expenses may include the cost of transportation, lodging, and storage incurred during the move. However, it is essential to consult with a tax professional or refer to the specific state’s guidelines for a comprehensive list of deductible expenses.
Q: Do I need to keep records of my moving expenses?
A: Yes, it is crucial to keep detailed records of your moving expenses, including receipts, bills, and any other relevant documentation. These records will be necessary when preparing your state tax return and may be required in the event of an audit.
Q: Are there any limits on the amount of moving expenses I can deduct?
A: Some states impose limits on the amount of moving expenses you can deduct. It is advisable to check the specific state’s guidelines to determine any limitations or restrictions that may apply.
Q: Can I deduct moving expenses if I am self-employed?
A: Yes, in some states, self-employed individuals may be eligible to deduct qualified moving expenses. However, specific criteria and limitations may apply, so it is crucial to review the state’s guidelines.
In conclusion, while the federal moving expense deduction is no longer available for most individuals, several states still allow taxpayers to deduct qualified moving expenses on their state tax returns. If you are planning a move, it is essential to familiarize yourself with the specific rules and regulations of the state you are moving to and consult with a tax professional to ensure you take full advantage of any available deductions. Remember to keep detailed records of your moving expenses to support your deductions and avoid any potential issues during tax season.