Looking for Real Estate Tax Tips? Did you know that a deduction of certain moving expenses can be claimed if you are moving to a new home because you changed a job location or started a new job?

Relocating for a new job or changing job locations can be an exciting yet stressful experience. Amidst the packing and settling into a new environment, it's essential to consider the tax implications of your move. Here are some valuable tax tips to help you navigate deductions on moving expenses and job changes.

1. Understanding Moving Expense Deductions

Moving expenses can add up quickly, but the good news is that some of these costs may be tax-deductible. However, it's important to note that the Tax Cuts and Jobs Act (TCJA) of 2017 significantly changed the rules for deducting moving expenses. Here are the key points to keep in mind:

• Eligibility: As of 2018, only active-duty military members and their families can deduct moving expenses on their federal tax return if the move is due to a military order. For most other taxpayers, moving expenses are no longer deductible on federal taxes.
• State Deductions: Some states still allow deductions for moving expenses on state tax returns. States like Arizona, Kentucky, and Virginia may offer these deductions. Be sure to check your state's tax laws or consult with a tax professional to determine if you qualify.

2. Qualifying Moving Expenses

If you are eligible to deduct moving expenses, here are some of the costs that may qualify:

• Travel Costs: You can deduct the cost of gas and oil if you drive to your new location. Alternatively, you can use the standard mileage rate. Keep detailed records of your travel expenses.
• Packing and Moving: Expenses related to packing, crating, and transporting your belongings from your old home to your new one are deductible. This includes the cost of shipping pets or cars.
• Storage Costs: Storage expenses for up to 30 days after you move out of your old home are deductible.
• Lodging: You can deduct lodging expenses incurred during the move, but meals are not deductible.

3. Tax Implications of Changing Job Locations or Starting a New Job

When you change jobs or start a new job, there are several tax considerations to keep in mind:

• Severance Pay and Accrued Vacation: If you receive severance pay or payment for accrued vacation time when leaving a job, these amounts are considered taxable income and are subject to federal, state, Social Security, and Medicare taxes.
• Unemployment Compensation: Unemployment benefits are typically taxable income. You can choose to have federal income taxes withheld from these payments by submitting Form W-4V to your state unemployment office.
• Capital Gains on Home Sale: If you sell your primary residence due to a job change, you may be able to exclude a portion of the capital gains from taxation if you meet certain conditions. Generally, you must have lived in the home for at least two of the last five years.

4.Filing the Right Forms

When you start a new job, you'll need to fill out several tax forms:

• Form W-4: This form helps your employer determine how much federal income tax to withhold from your paycheck.
• Form W-2: By January 31 of each year, your employer will provide you with this form, which shows your earnings and the taxes withheld from the previous year.

5. Consult a Tax Professional

Tax laws can be complex and subject to change. It's always a good idea to consult with a tax professional to ensure you're taking advantage of all available deductions and credits. They can provide personalized advice based on your specific situation and help you navigate the intricacies of tax regulations.