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Filing Season Tax Tips for Transferees
Peter K. Scott
Peter Scott Associates
Worldwide ERC® Tax Counsel
January, 2008
Here are several items deductible as moving expenses that are sometimes overlooked:
- Tips to the moving van driver or helpers.
- Mileage for driving second or third cars to the new location (in addition to the first car). For 2007, you can deduct 20 cents per mile. The deduction for 2008 is 19 cents per mile.
- Lodging expenses in the departure location for one night after the household goods are packed, and one night in the new location on the day of arrival.
- Moving household goods from a location other than your main home, up to what it would have cost to move them from the main home
- Storage of household goods for up to 30 days, including the cost of moving the goods into and out of storage
- Expenses not reimbursed by your employer, such as extra crating, shipment of unusual items, tips to van line staff, etc.
And remember: You don’t have to itemize to deduct moving expenses.
Other filing season tips:
- If the seller of your new house agreed to pay part of your mortgage points instead of reducing the sales price, IRS says you can deduct those points, even though the seller paid them.
- If you ever refinanced your mortgage, don’t forget to deduct the entire remaining balance of points paid on the refinancing in the year you sell your home.
- If your new job is for a different employer, and you earned more than $97,500 in 2007, you may have had too much deducted as contributions to Social Security. You can take a credit for the excess over $6,045 on line 67 of your Form 1040 tax return..
- If you moved to one of the states with state and local sales taxes but no general income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming) you may benefit from an itemized deduction for state sales taxes. The deduction was reauthorized by Congress for 2007 at the end of 2006.
- If you paid for a new mortgage insurance contract in 2007, you may be entitled to an itemized deduction as mortgage interest for the portion of the premium allocable to 2007. No deduction is available, however, if your adjusted gross income is more than $110,000.
The foregoing is intended as general information only. Regarding your specific situation, Worldwide ERC® suggests that you consult with your own tax or legal advisor as appropriate.
For reprint information contact: coalition@erc.org
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