Moving can have various tax implications, especially when it comes to potential deductions, employer reimbursements, and changes in tax residency status. In this overview, we will cover:
- Recognizing the tax challenges and opportunities when moving
- How recent tax law changes impact moving-related deductions
- Planning for a move with tax efficiency in mind
Current State of Moving Expense Deductions
- Overview of TCJA Changes to Moving Expenses
- Who is affected and what changes were made
- Qualifications for Deducting Moving Expenses for Military
- Specific criteria for eligibility
Documenting Your Move
- What to Keep Track Of
- Comprehensive list of records to maintain
- Storing Documents for Tax Purposes
- Best practices for organizing and storing receipts and records
Tax Residency and Domicile Considerations
- Establishing Tax Residency
- State and international considerations for tax purposes
- Dual-State Residency and Tax Filings
- Navigating multiple state tax obligations
- International Moves and U.S. Taxes
- Understanding the Foreign Earned Income Exclusion (FEIE) and tax treaties
Employer Reimbursements for Moving
- Taxable vs. Non-Taxable Reimbursements
- How employer assistance can impact your taxes
- Negotiating Your Relocation Package
- Tax-efficient strategies for structuring moving assistance
Final Thoughts
- State-specific tax considerations for moving
- IRS resources for moving and changes of residency
- Seeking professional tax advice for interstate and international moves
Detailed Bullet Points for the IRS Sections:
- IRS References:
- Moving Expenses for Military: IRS Publication 3, Armed Forces’ Tax Guide
- Tax Residency Rules: IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
- Foreign Earned Income Exclusion: IRS Form 2555 and instructions
- Employer Reimbursements: IRS Publication 521, Moving Expenses, for historical reference and understanding the tax treatment of various types of reimbursements
