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Can I Claim Moving Expenses on My Taxes?

You can claim a tax deduction for moving expenses as long as you meet several IRS requirements

Moving is a real pain in the butt, there’s no changing that. But a nice deduction from the IRS can take the sting out of it.

That’s right, you may be able to deduct the cost of packing and shipping your stuff as well as traveling and lodging (but not meals).

In order to claim these expenses, however, you must meet several IRS requirements that ensure your move was required for business. That’s right, not every move qualifies. You can only claim the deduction if you move to start a new job or seek work in a new city, and you can only deduct expenses that were not reimbursed by your employer.

In addition, you must pass two IRS tests: the distance test and the time test. Continue reading “Can I Claim Moving Expenses on My Taxes?”

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Business Travel Tax Deductions

Many of the expenses involved in a business trip are tax deductible

Those who have to do a lot of traveling for work will be relieved to know that you can deduct many of those expenses and thus significantly lower your tax bill.

What travel expenses can I claim?

According to the IRS, you can claim the “ordinary and necessary expenses of traveling away from home for your business, profession, or job.”

Be warned: the expenses cannot be “lavish or extravagant” in the eyes of the IRS. Obviously no personal expenses are deductible either. It might make sense to exclude questionable expenses from your return as they can increase the chance of you getting audited.

The travel expenses you can deduct include Continue reading “Business Travel Tax Deductions”

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A Number of Income Tax Deductions and Credits Set to Expire

You can save money on your 2011 taxes with these soon-to-be-extinct tax breaks!

Think it’s too late to save on your 2011 taxes? Think again! Here are six deductions and tax credits that will be gone by the end of the year:

  • Energy Efficiency Tax Credit

Making energy-efficient upgrades to your home isn’t just a great way to cut down on heating and cooling costs, it can get you a tax credit too.

If you add more insulation to your attic or buy an energy-efficient appliance, among other possible improvements, you can apply for a tax credit. For a full list of qualifying improvements, refer to the Energy Star website.

The tax credit is worth 10% of the cost of these improvements.

But note that there is a $500 lifetime limit on this credit, so if you’ve taken advantage in previous years, you may not be able to do so again.

Congress has made some changes to the rules governing these credits for 2011. Go here for a full summary of the changes. Continue reading “A Number of Income Tax Deductions and Credits Set to Expire”