Can I hold off claiming my moving expenses this yr and apply them to next yrs taxes to be used as deductions?

Question

I am currently working in Iraq and I am making alot more money this year than I did last year. In 2006 we moved three different times accross the country for work reasons. I know the moving expenses are deductable but want to apply those deducations to 2007 taxes. Is this possible? Thanks-

Answer 1

you're presumably on a cash basis, so 2006 expenses should be applied to 2006 taxes, not 2007.

Answer 2

You must claim the expenses in the year that the money was spent. You cannot carry them forward to 2007 if they were paid in 2006.

Answer 3

Your 2006 moving expenses cannot be deducted on your 2007 return.

Your foreign earned income has exclusions as described in the instructions for Form 2555.

http://www.irs.gov/pub/irs-pdf/i2555.pdf

Answer 4

Deductions have to be used in the year when they're paid. If you pay something by putting it on a credit card, the date they're considered "paid" is when they're put on the card, not when the card is paid off.

There is a limit to how many moves you can deduct in a year - I don't know if being in Iraq gives any leeway with those rules.

If you're in the military, thanks for being there.....

Answer 5

You can only count your moving expenses for the year that you moved in not unless you amend last years taxes..