It’s that time of year again – tax season! As the deadline looms closer and closer, you’re working on collecting all the proper documents. I’m sure you are all familiar with the standard forms like W-2s, 1098-E student loan interest and 1098 home mortgage interest. But if you have moved in the last tax year, you may be missing out on some valuable deductions. If you utilized a car shipping company to move your vehicle you are probably eligible for an additional deduction. We’ll explain how your auto transport could increase your tax refund this year.
The IRS has 3 areas they check to see if your relocation qualifies for a tax reduction.
Even if you get reimbursed for your moving expenses, you may be able to deduct a portion of your expenses. Check with your tax professional to verify what type of reimbursements are deductible.
If you meet all the requirements above, you’re a good candidate to start collecting documents for your car shipping deduction. Make sure to ask for a copy of an invoice from the company who shipped your vehicle.
If you move for a job, including a first job as a new graduate, it’s worth your while to look into this deduction. If you use a tax professional to help you, make sure to mention this part of relocating to them so you get your proper deduction. If you do your taxes yourself, make sure you don’t skip this part of your preparation. And if a relocation is in the works for you this year, make sure you check out our auto shipping tips to start you on the right track.