Deducted moving expenses and then moved again in same year?

Question

I moved in the beginning of 2005 for a job and deducted about 2k moving expenses. Filed, and I got a tax refund. Five months later (in the same year), I moved again out of state. I know I have to file my first job move's moving expenses deduction as extra income for upcoming 2006 taxes in April 2007, but after reporting my 1st move's deduction as extra income AND reporting my 2nd job's move as another moving expense, should I expect to pay the IRS money or get money?

I've always gotten a tax refund, basically I want to know if this will cause me owe money instead. I just want to know if I need to plan ahead to save $ for this.

Answer 1

Did you mean to say you moved twice in 2005 but deducted the first move and not the second move? And now that you have worked at the second location for at least 39 weeks, you know that you are entitled to deduct the expenses for the second move and want to fix this?

If this is correct, you should not add the amount deducted on your 2007 tax return.

In order to deduct the second move, which was also in 2005, you need to amend 2005. Since you have to amend 2005, you can correct the deduction for the first move at the same time.

So file an amendment for 2005, removing the deduction for the first move, and adding the deduction for the second move.

If both moves cost about the same, there will be no change in your refund for the 2005 tax return filed in 2006.

You will likely have a balance due on the 2005 amendment if the second move deduction is less than the first move deduction.

You will likely get a refund on the 2005 amendment if the second move deduction is more than the first move deduction.

Answer 2

nina is right on this one. amend 2005 (better have receipts for this) moving expenses are usually itemized dedcutions and if it was over 5100 for a standard deduction the your tax break will be a little better. You shouldn;t have to pay but you need to admend (if you really want to if your moving expenses was say $500 don't bother let it ride it wont make much of a difference if it was another 2k then you should amend it)

Answer 3

in the journey that your organization gave you a collection volume of money for relocation, does now not require receipts for reimbursements, and withheld taxes on the relocation allowance, then you would declare your transferring price as an adjustment to earnings (assuming you otherwise qualify for the deduction). save in recommendations different moving expenditures you perchance able to assert similar to mileage for driving your human being motor vehicle or airfare to get you on your new area, inn continues to be, etc. The $four hundred to the sources manager would must be taken as an price on a at the same time as table E.