SHERMAN, TX -- With school out, many parents find moving in the summer less of a hassle. Although it can get expensive, there's still some ways to lower your moving costs. This Moms Everyday segment shares tips to deduct moving expenses from your tax return and save on home furnishings.
If a new job or job relocation has required you to move, you may qualify to deduct moving expenses. But, according to Finance Expert Ken Lewellyn of eHow Finance, you must first satisfy two tests:
1. A "distance test"...
'If you lived five miles from your previous job then your new job must be 55 miles from your previous home," said Lewellyn. "It's gotta be at least 50 miles difference."
2. And the "time test".
"You have to work at least 39 weeks at your new job in order for it to be classified as a deductible expense. If you happen to be self-employed, you have to work at least 39 weeks in the first year and 39 weeks in the second year in order for it to be a legitimate expense,' he added.
Of course, there are exceptions these tests in case of death, disability and involuntary separation. And if you're in the armed forces and moved because of military order, you don't have to satisfy either tests.
So if you've moved and have mountains of boxes to unpack, check with your accountant because chances are you may just qualify for a deduction.
Once you've moved there's the question of new furniture. Lonnie Watterson, owner of Signature Home Furniture in Sherman, says traditional financing with interest-free time is only one way to help save furnishing your new home.
"There are options for people who maybe have some dings on their credit," said Watterson. "There are some no credit-check finance plans that still even offer interest-free financing but it's a way to still get furniture on financing terms."
Finally, to save gas on back-and-forth trips returning furniture because it was the wrong color or size, the store has services to make sure your furniture is both visually pleasing and can physically fit your room.
"Size-wise we've got computer programs to show that can scale it to fit your room. It's really important for us to show 'em exactly what it is that they need to fit in their room," said Watterson.
If you qualify for moving tax deductions, the IRS recommends keeping a record of moving expenses including receipts, bills and mileage logs. Visit IRS.gov for more information.
For furniture financing options, Signature Home Furniture can be reached at 903-892-9966.