Hi everyone, i have a simple question and i hope i can get some answers. I moved from Nevada to Idaho about 8 months ago and i want to file taxes on my moving expenses, the only problem is that i only have a part-time job here, and the law says that you need to have a full time job. The reason i am asking this is because, this same rule applies to self-employed people and sometimes those people don't always have a full time job.I hope i don't confuse anyone and i appreciate any help that you can give me . Thanks a bunch!!
Posted by Sergeant (Member # 8749) on :
If you only have a part time job do you actually have enough income and deductions to justify itemizing? I for one had several thousand dollars more in deductions that I had in taxable income.
Sergeant
Posted by KetchupPrinceConsort (Member # 8047) on :
First of all, you do not have to itemize to claim moving expenses. They are an adjustment to income, not a typical deduction.
That said:
Valentina, it sounds like you meet the distance test. However, you do not meet the time test. Self-employed people must also meet the time test. The time test is that you must work full time (usually 40 hours a week; whatever is generally considered "full time" in your field and area) for 39 weeks out of 12 months (if an employee; 78 weeks out of 24 months if self-employed or if both self-employed and employed and cannot meet the employee time test.)
If you anticipate that you WILL meet the time test in the next 12 months (in 2008), you can take the deduction anyway. However, if you then don't meet the time test, you will have to amend your taxes and pay any taxes owed, or report the difference in taxes as income.
So it sounds to me like you probably cannot deduct your moving expenses.
If any of that confused you I will be happy to try to clarify. Of course, since it IS tax season, I'm home very late most nights, but I will try to answer your questions (and others if people have them) as quickly as possible. Posted by anti_maven (Member # 9789) on :
KPC - I wish you did Spanish Taxes too. I could do with some equally clear explanations!
Posted by ketchupqueen (Member # 6877) on :
If he read Spanish, he'd probably try to help you wade through the available info. Sorry he doesn't!
I think they might have a foreign tax person in the office, but I think that is more someone that knows about how foreign taxes affect your American corporate and income taxes, not actually doing the foreign taxes...
Posted by AvidReader (Member # 6007) on :
The IRS forms are a little confusing. Am I reading correctly that the IRA credit only applies if you're itemizing deductions?
Posted by scholar (Member # 9232) on :
I am poor and looking forward to an earned income credit (I did the little test on the IRS website and it said I would get one). Is there any reason to file seperately vs jointly?
Posted by Valentina (Member # 9029) on :
Ketchup prince: since i work 30 to 40 hours a week depending on business, i would not be considered full time? (according to IRS guideline). Thanks for all the help, i really appreciate it Posted by ketchupqueen (Member # 6877) on :
Valentina: are you a seasonal worker? What field are you in? How many hours a week do you work most of the year?
I'm trying to clarify so when KPC comes home he can answer your question. Posted by ClaudiaTherese (Member # 923) on :
That's so nice of KPC to answer questions like this. You know, I was so surprised to realize he was doing taxwork, so I plowed back through on some old threads to catch up on the KetchupClan lives.
Way to go! Posted by ketchupqueen (Member # 6877) on :
I just can't believe he likes this stuff. It makes my head hurt. And ticks me off a little when he's asleep and I try to cuddle and he tells me that that's not deductible. Posted by Boon (Member # 4646) on :
scholar, if you're married and file separately, you will not qualify for the EIC.
AvidReader, no, the IRA deduction goes on line 32 of the 1040, not on Schedule A (Itemized deductions). It is in the Adjusted Gross Income section, and reduces the amount of income you're taxed on. Ironically, it's also the same section moving expenses go in. Posted by scholar (Member # 9232) on :
Thanks Boon. Now to fill out the paperwork. This is my first year with a baby (monster was 3 days late for counting as a 2006 deduction) and so first EIC (very exciting).
Posted by ClaudiaTherese (Member # 923) on :
Aw, Boon, and with a new baby. Thank you so much, too.
Posted by AvidReader (Member # 6007) on :
Aha! Thanks, Boon.
Posted by scholar (Member # 9232) on :
Nifty. I filled out turbo tax and it is giving me a $2000 refund. Considering I only paid $1000 in taxes, this seems like a pretty sweet deal. I have never gotten back more then I put in before. And in a few months, I'll be getting another $900. Taxes are fun! Posted by Valentina (Member # 9029) on :
Ketchup Queen:
I am in retail, i am not seasonal, i work around 30 to 40 hours a week depending on business. Thanks so much for all the help Posted by ketchupqueen (Member # 6877) on :
So is 30-40 hours considered full time in your industry?
Posted by KetchupPrinceConsort (Member # 8047) on :
You should be fine to deduct the moving expenses. One thing with the IRS is if you have a good argument as to why they should allow it, they will usually allow it. If they ever question it, you could always argue that since you are in retail and your hours vary, you are considered a full-time employee. In my opinion, I think the IRS would consider it part-time if it was less than 30 hours consistently.
Posted by KetchupPrinceConsort (Member # 8047) on :
(To clarify: in other words, pretty much everyone works 30 hours a week at your job and in your industry during those times, when there is more work available you work more. So that meets the "considered full time in your location/industry" requirement.)
Posted by Valentina (Member # 9029) on :
I did some research on my own, and the state of Idaho, considers you full time employee if you work 32 hours average, which is great 'cause i do work those hours. I am qualified after all to file, Thanks a bunch for all the help, you have been great!!!
Posted by AvidReader (Member # 6007) on :
I'm getting back pretty much the amount of my IRA credit. Woo hoo!
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. Thanks a bunch!!
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