Tax Relief for Expenses of Employment - The Basic Guidelines

FinanceTax

  • Author Mike Rogers
  • Published August 21, 2011
  • Word count 479

Employees who need to relocate due to work can avail of tax relief for expenses of employment. What do they need to do? They simply need to indicate the expenses in their income tax returns when they file at the end of the taxable year. If the IRS accepts the expenses as work-related, then they are granted the tax relief mentioned. However, this tax relief cannot be claimed easily are there are several rules set by the IRS.

Employees who need to relocate due to work can avail of tax relief for expenses of employment. What do they need to do? They simply need to indicate the expenses in their income tax returns when they file at the end of the taxable year. If the IRS accepts the expenses as work-related, then they are granted the tax relief mentioned. However, this tax relief cannot be claimed easily are there are several rules set by the IRS.

Number two: The distance of the move from one place to another place should be within the parameters set by the IRS. For individuals to qualify for tax relief for expenses of employment, the new workplace and the former place of residence should be at least 50 miles more distant than the old workplace and the former residence. What this means if a person used to travel 4 miles to work in his former workplace, he should travel 50 miles more from his home to the new work place to qualify for the tax break. This means that he should travel 54 miles to the new workplace in order to have the expenses deducted from his income tax.

The second rule set by the IRS has something to do with distance. In order for an individual to avail of tax relief for expenses of employment, he must prove that his former residence is really closer to his old work place and that his new work place is really very far away from his old residence. This can be quantified using 50 miles as the base distance. What this equates to is this: The total distance between the former residence and the old work place should be added to 50 miles. This becomes the distance that the employee must cover from his old home to get to his new work place and this is the base distance that the IRS will consider for this particular example. The expenses for the relocation can be deducted from taxes when this rule has been met.

Any individual who meets all of the three conditions mentioned above can avail of tax relief for expenses of employment. The expenses they spend due to work are tax-deductible. When filing income taxes, the taxpayer should just indicate the expenses in the "Moving Expenses Form" called Form 3903. This form should be attached to Form 1040 of the tax returns and they can benefit from the deductions they can get.

Are you looking for in depth information about tax relief help, tax relief for expenses of employment and much more, then visit Mike Roger's Site to find the best advice on tax relief for you.

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