When claiming relocation expenses for a tax deduction, how much do you get back?

Relocation To Atlanta

Moving Expenses would go on Form 3903 as an adjustment to federal income. The amount would be deducted on line 26 of form 1040. The actual amount you save on your taxes will depend on your tax bracket. Here is a link to the info on what qualifies as a moving expense.

Relocation To Atlanta

The tax savings depends upon your marginal tax rate. If you spent $4,000 and are in a 15% bracket, you’d save $600 or less. If you’re in a 25% tax bracket, the savings would be $1,000 or less.

Relocation To Atlanta

If you’re willing to move nearly across the country for a new job I must assume that it was for more money. Perhaps you should think about spending some of that money and hiring the services of a Tax Professional for this next year…just to ensure that you don’t miss anything. Then, after you are fully ensconsed in your new position, and your tax return goes back to being boring THEN you can think about preparing it yourself again.

Keep in mind that you probably DO NOT need the services of a CPA for a Form 3903. Drag out the Yellow Pages and look under T for Tax Preparers. If you threw it out when you moved in you can find one at the public library or the local Chamber of Commerce. Also the CC could likely give you a local referral.

Many professional tax practitioners belong to N.A.T.P. – the National Association of Tax Professionals. NATP has a searchable database of their membership. You enter your zip code and let it know how far out you want to search and it returns names of Tax Pro’s near you. Click on the link below to visit their site.

G’Luck…

Mike Womack
Zero Degrees Tax LLP
Moore, OK

Relocation To Atlanta

No you don’t get the full cost. At most you get a % equal to your tax bracket, which for many people is 15% and for most people is 10-25%

Relocation To Atlanta

You can claim moving expenses if you meet the requirements. It is deductible even when you do not itemize deductions. read: