February 2018 – 2018 Tax Reform (4) – Moving Expense and Tax Preparation Fee

As the tax reform will signed into law on 12/22/2017, some expenses are no longer deductible. Moving expense and tax preparation fee are among those expenses.

Moving expense deduction is gone. Before the tax reform, taxpayer can deduct moving expense if the meet the following requirements:

First, the new workplace must meet the distance test. The new workplace must be located at least 50 miles away from the old home than the old job location was from the old home.

Second, the taxpayer must work full-time for minimum of 39 weeks during the first 12 month period at the new location. The 39 weeks can be not consecutive or for different employers.

Third, the moving expense must incur within one year of the date the taxpayer starts working at the new location.
The qualified moving expense includes gas or mileage on the vehicle, rental truck, storage, boxes, and cost of lodging at a hotel on the way to the new location. However, the deduction was removed under the tax reform.

Tax preparation fee deduction was also removed. Before the reform, it subjected to a 2 percent limit. This means the deduction can be taken only if it is greater than 2 percent of the taxpayer’s AGI. However, it is also gone under the new tax reform.

For more information, please consult with your CPA.