It may seems so far away, but there are just over 90 days left to file your 2011 income taxes! For those employees whose relocations incurred expenses during 2011, there is an added component to their tax filings this year. Though transferring employees will receive a 1099 for applicable relocation expenses, the Worldwide Employee Relocation Counsel has outlined a few key reminders 
to consider during the upcoming tax season:
Below 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).
- 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 $106,800 in 2011, you may have had too much deducted as contributions to Social Security. You may be able to take a credit for the excess 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, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming) you may benefit from an itemized deduction for state sales taxes.
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.
