We are another week closer to “Tax Day” – 34 days for those of you who are counting! This past weekend, we “sprung” forward and the daylight is lasting longer and longer! Spring and summer are most definitely on their way.

The past couple of weeks, we have been talking about itemized deductions that were either eliminated or changed through the newly passed, Tax Cuts and Jobs Act (TCJA, better known as “Tax Reform”). This week, we are going to take a closer look at personally paid work expenses and work-related moving expenses.

Under the previous tax law, workers could deduct unreimbursed work expenses (such as licensing fees) as part of their itemized deductions. With the passage of TCJA, this itemized deduction has been suspended until 2025.

Also under previous tax law, work-related moving expenses were allowed as part of itemized deductionsmoving as long as they met 3 qualifying criterion. The deduction had to be claimed within one year of the move, the distance test needed to be met, and the time test had to be met. The distance test stated that the new workplace was 50 miles further from the old home than the old job was from the old home. If there was no “previous” workplace, the new job had to be at least 50 miles from the old home. The time test stated that employees must be employed full time for at least 39 weeks during the subsequent 12 months after the move for the new job. For those who were self-employed, they must have worked full time for at least 39 weeks during the first 12 months following the move, and a total for 78 weeks during the first 24 months following the move. For those military members moving because of military orders or a permanent change of station, the time and distance test did not need to be satisfied.

Tax Reform once again changed things. The moving expense deduction has been eliminated until 2025. The only exception is for moving expenses incurred by military members – those deductions and exclusions still remain in place.

One of the main reasons touted by supporters of “Tax Reform” was simplified reporting. By eliminating most of the previously itemized deductions, filing taxes certainly has become easier. However, whether the increased standard deduction will weigh out the elimination of itemized deductions for most people still remains to be seen.

Of course, all of the changes to the tax structure went into place as of January 1, 2018. That means if you moved last year (during 2017) for work and meet the above listed qualifications, you can still claim the deduction when you file your taxes in the next few weeks. If you have questions about whether you qualify for the deduction, give our office a call today! Appointments are booking quickly! Call today to schedule your free consultation.

To ensure that all taxes are filed on time and extensions need not be filed, all tax data must be received by our office no later than Friday, March 30.

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“Topic Number 455 – Moving Expenses.” IRS, 31 Jan. 2018, www.irs.gov/taxtopics/tc455.

“Tax Reform 2018 Explained.” Magnify Money, 9 Mar. 2018, www.magnifymoney.com/blog/new/tax-reform-2018-explained/.