Quick Question For Helen (or anyone else)

Hi Helen,
           as you know I moved to Florida last year.  I have a quick question that you will hopefully have the answer for.

It cost me around $8,000 to move here, Freight, Flights etc etc.  I've just started to prepare my numbers for this year, and I'm wondering if I'm allowed to take the moving expenses from adjusted income.

The people at HR Block are saying I cannot, but I'm not totally convinced they know what they are doing.  Publication 54 seems to suggest that you cannot use them, but this must be a situation that occurs a lot.

Regards

Bill McDonald

Hi Bill

You can indeed deduct your moving expenses if they are of the deductible kind (transportation of household goods, storage, and air fare) and if you meet the time and the distance tests.

Please see this link below which is form 3903 and instructions for more details. Let me know if you still have questions.

http://www.irs.gov/pub/irs-pdf/f3903.pdf

Helen

Hi Helen,
           I have read form 3903 and publication 54 (again).  It certainly looks to me as though I can claim them.  Are you absoulutely certain, if so, I going to have to take issue which HR Block, because they are adamant that I cannot.

My circumstances are pretty simple.  I worked in the UK until May 31st, moved here in June, started work in August.  The way they have suggested I prepare my taxes is as follows.

adjusted income = (Total US earnings + Portion of UK earning that were not excludable) - ( Standard deduction and allowances).

Tax due was minus child credit + a small credit from UK taxes that I paid.  

Essentially I over paid, but I think they probably have not worked out the best way, especially as they totally dismissed the moving expenses.      

Regards

Bill