Oakland, California (EastBayDaily) — Liberty Tax Service, an Oakland tax preparation specialist company, urges good recordkeeping practices for moving expenses that may be tax deductible on the next Federal tax return. Anyone who has moved at least 50 miles to accept a full-time position in their current field of employment may be able to deduct some moving expenses. The relocation must have occurred within a year after the taxpayer began the new job. Those in the military moving due to a permanent change of station do not have to meet the distance requirement.
“You may claim a deduction for mileage, tolls and disconnecting and reconnecting utilities,” says Malkeet Singh of Liberty Tax Service.
The following expenses are deductible: fees for rental vans or moving companies to transport household items and personal effects, lodging expenses for motel stays en route, foreign move storage expenses, tolls, parking fees, shipping costs for your car and pets, and 30 days of storage expenses. Meals are not deductible and neither are expenses incurred due to the sale or purchase of a home. If moving expenses are reimbursed by the employer, they are not deductible.
Claim moving expenses by filing Form 3903, Moving Expenses, with Form 1040. Always be sure to notify the IRS of the relocation by sending them Form 8822, Change of Address.
About Liberty Tax Service
Liberty Tax Service an Oakland tax planning company is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared more than 8 million individual income tax returns. With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.
Liberty Tax Service is the only tax franchise on Forbes’ “Top 20 Franchises to Start.” They also rank first of the tax franchises on Entrepreneur’s “Franchise 500.” Liberty Tax Service provides computerized income tax preparation, tax planning, electronic filing, and online filing through e-Smart Tax. Oakland’s Liberty Tax Service also has a tax school that offers income tax preparation courses.