Moving and Taxes: What You Need to Know

Moving to a new home can be an exciting adventure or a necessary change, but it can also come with some stress. One thing that you shouldn't overlook is the impact of moving on your taxes. To make sure that you're prepared for these tax implications, keep reading for some helpful tips.

Update Your Address with the IRS

After you move, it's important to update your address with the IRS. This step is crucial to ensure that you receive any tax-related correspondence that the IRS may send you, such as refund checks or notices about filing deadlines. You can update your address by filling out a change of address form with the IRS or by providing updated information on your tax return.

Deducting Moving Expenses

If you moved for work-related reasons, you may be able to deduct your moving expenses on your tax return. This includes costs related to moving your household goods and travelling to your new home. However, there are specific criteria that you must meet to qualify for these deductions, so it's best to consult with a tax professional.

Understand State Tax Laws

When moving to a new state, it's important to understand that state's tax laws. Some states have income tax, while others do not. Additionally, some states have specific rules for taxing out-of-state income. Make sure to research the tax laws in your new state to avoid any surprises come tax time.