Moving Costs in budget?

[abbaroodle]

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[cupcake_queen]

http://forums.studentdoctor.net/showthread.php?t=126415

Hi abba,

Before you move, check out www.movingscam.com and the thread above first. I just made a big move myself using a bad moving company (ProActive Relocation, Las Vegas, NV) and wish I had checked out this site before. I highly recommend putting in the extra work (packing, loading/unloading, driving your stuff yourself). It might be more expensive considering the truck rental rates, mileage rates, gas, motel fees, food, time and effort but I think it's worth it. This will definitely be the only way to go for me from now on whether it's a big or small move. Good luck.

 

[DrDOdo]

I see a lot of people telling you to move yourself....pack/unpack,drive, etc. That is what my family of 5 did. My husband was a great planner, though. He called Penske in January and locked in a GREAT price! The further away you are from your moving date the cheaper it is to rent a truck...they will lock in that price for you. We moved in June and the whole thing cost us $800!! We moved from Corvallis, OR to Southern California. Penske is great though! The average fleet truck is 18 months old and 50,000 miles on them!! Ours had 6,000 miles on it so, it felt brand new! We rented a 25 foot long moving truck with a car trailer, and I followed behind with the kids in a minivan...the moving cost includes the gas I used to follow the moving truck.
We dropped the kids off at my parents in central CA and continued on to our destination, unloaded the truck in 6 hours by ourselves, set up what we could in the apartment for two days then went back to get the kids!! We were dead when the whole ordeal was done!!

Just my experience

 

[John Deere Gree]

Just remember you might be eligible to deduct moving expenses from your taxes for the year. Check the rules when you fill out the 1040s next year.

 

[off2skl]

Just remember you might be eligible to deduct moving expenses from your taxes for the year. Check the rules when you fill out the 1040s next year.

I think that only works if you're moving for a job. And then your home and new job need to be at least 50 miles away from the old one.

 

[John Deere Gree]

You are right. However, when you change jobs, i.e. going from the "real world" to student, it's a great deduction.

 

[exia80]

if you know any truckers that happen to cruise between teh two cities, they can take your stuff (for a fee off course)....we had friends who are truckers and they even took my car in the truck...

now i know that now everyone has this possibility but if you do it is a good alternative to evil U-hauls and so on

 

[tkim]

You are right. However, when you change jobs, i.e. going from the "real world" to student, it's a great deduction.

When I filed my taxes last year, I used H&R Block. I asked about the moving deduction and they told me no way that I could claim it, since entering school is not considered a 'job'.

However, since I was filing jointly with my wife, *she* could claim it.

If you attempt to make this deduction on your own, you do so at your own peril ...

 

[John Deere Gree]

school/student is considered a job...so I've gladly claimed it.

 

[tkim]

school/student is considered a job...so I've gladly claimed it.

http://origin.bankrate.com/brm/itax/tax_adviser/20040210a1.asp

Ask the tax adviser
By George Saenz ? Bankrate.com

Writing off medical school moving costs

Dear Tax Talk,

My wife moved this year to Grenada for medical school and she will be living there for two years. We incurred a lot of moving costs (around $2,000). Can I claim this under the moving expenses on line 27 of 1040? Please advise.
Sincerely,
Jinu

Dear Jinu,

You can deduct your moving expenses if you meet all three of the following requirements:

1. Your move is closely related to the start of work.
2. You meet the distance test.
3. You meet the time test.

Although you may meet the distance test, since the move was education related and not connected to the start of work, the moving expenses would not be deductible. If you moved with her to start a new job in Grenada, then you can claim the moving expenses as related to the start of work.

But your new job also has to meet the time test in order to qualify. The time test relates to employment in the area that you moved to. The test is different for employees and self-employed individuals.

If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Full-time employment depends on what is usual for your type of work in your area.

For purposes of this test, the following four rules apply:

1. You count only your full-time work as an employee, not any work you do as a self-employed person.
2. You do not have to work for the same employer for all 39 weeks.
3. You do not have to work 39 weeks in a row.
4. You must work full time within the same general commuting area for all 39 weeks

If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test).

For purposes of the time test for self-employed persons, the following three rules apply.

1. You count any full-time work you do either as an employee or as a self-employed person.
2. You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks.
3. You must work within the same general commuting area for all 78 weeks.

A student cannot be considered self-employed. Moving expenses are claimed on Form 3903.

http://origin.bankrate.com/brm/itax/tax_adviser/20020524a.asp

Ask the tax adviser
By George Saenz ? Bankrate.com

College-related moving expenses

Dear Tax Talk:
Job-related moving expenses are deductible. What about moving expenses related to returning to graduate school?
David

Dear David:

An individual who has a job-related move could deduct moving expenses. A move is job-related when you commence full-time work at the new location as an employee. You must be employed full-time at the new location for at least 39 weeks during the first 12 months following the move.

An individual who is self-employed also qualifies to deduct moving expenses, provided that the individual is not a student also.

Unfortunately, moving expenses to attend graduate school absent full time employment in your usual work is not deductible. The only way around this would be making the move and deferring school until you meet the employment test.

 

[John Deere Gree]

http://www.irs.gov/pub/irs-pdf/p521.pdf

Nothing in there says full-time students can't deduct (you have to work 39 weeks out of 52 though, but not all at school). I go by what the IRS says not what some ******ed tax dude says.

 

[tkim]

http://www.irs.gov/pub/irs-pdf/p521.pdf

Nothing in there says full-time students can't deduct (you have to work 39 weeks out of 52 though, but not all at school). I go by what the IRS says not what some ******ed tax dude says.

Sure.

If you were to move and also take on a full-time job for 39/52 weeks while attending medical school, then certainly you are eligible to take the deduction.

However, I have never seen, nor do I believe, that the IRS considers 'school'='work', nor have I ever seen the IRS consider 'school'='employer' and 'student'='employee', except in the case of graduate teaching assistants.

So, if you can work full-time for 39/52 weeks while attending medical school, you not only deserve to take the deduction, you also qualify to be called superhuman!

I don't think this is a realistic thing for most of us, though.

In any event, the IRS only has three years to audit your return after filing. Good luck!

 

[mpp]

Nothing in there says full-time students can't deduct (you have to work 39 weeks out of 52 though, but not all at school). I go by what the IRS says not what some ******ed tax dude says.

Yes it does. It states that a student cannot be considered self-employed on Page 4. You cannot claim the moving deduction when you move to go to school.

 

[John Deere Gree]

In any event, the IRS only has three years to audit your return after filing. Good luck!

Already been audited this year (with moving expenses deducted). Had to verify an account, and everything was fine and dandy with the IRS.

thankyouverymuch.

 

[tkim]

Already been audited this year (with moving expenses deducted). Had to verify an account, and everything was fine and dandy with the IRS.

thankyouverymuch.

Interesting. Ever wonder why you were selected for audit?

There are few reasons the IRS chooses to audit someone - mostly discrepencies with the income/tax ratio. If you cannot see that being audited is a sign that your filed numbers don't jibe and are raising big red flags, and coupling that with your loose interpretation of tax code, you are really asking for trouble down the road.

What I also find somewhat interesting is that you say you were audited this year, ostensibly for *last year's* filing, since you cannot make the claim for this year, since this year isn't over yet. I find that rather incredible, that your return, filed earliest January 1 of 2004, has already been flagged for audit. I didn't know the IRS had become that efficient.

The timing of your filings with moving deduction would make you now an entering MSII. Congrats.

Bottom line: You cannot deduct for moving expenses for matriculation to medical school. H&R Block says so, the sites I listed says so. Every site you Google with 'school' 'moving' 'deductible' says so. When all the financial sites say that it cannot be done, it's a pretty clear indication that it can't be done.

 

[John Deere Gree]

To avoid any confusion, I was audited for the 2003 tax year (which is last year). I deducted moving cost for me moving for graduate school. I will be entering medical school this fall.

I was audited due to a trust fund, and nothing else. The problem arrose when I was given the wrong account information. It was easily fixed with a couple quick phone calls and subsequent varification by the IRS, and everything was straightened out with me not having to pay a dime.

Bottom line: I was audited with moving expenses deducted and never had a problem.