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Moving Expenses to Take Your First Job

17th January 2011
By Pamela Parker in Taxes
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Have you just joined your first job? Or are you just going to start on your first job? If the answer to either one of those questions is yes for you then you probably will also efile 1040 in some time. And you also have to think about the deductions that you can have to save your tax now. It might be just the starting for you but it is always good to start early with planning your taxes so that you can save as much money as is possible for you. Well here we are talking about a deduction that is there specially for you, because you are still just joining or have just joined your first job.

Job-hunting expenses you incur while you're looking for your first job are not deductible. But moving expenses to get to the job are. And you get this write-off even if you don't itemize. If you moved more than 50 miles, you can deduct the cost of getting yourself and your household goods to the new area -- including 24 cents per mile for driving your own vehicle for a move -- plus parking fees and tolls. The same holds true for any new job you take.

So start saving tax as early as possible and when you e-file your tax make sure you do not forget to get this deduction. You will probably find a lot more type of deductions as you are just starting to pay your taxes.

This is another credit that you need to think about before you file your online tax return. This is also not that widely known and often missed partially or wholly. Since the procedure is relatively new, many people do not know how to do this right and hence miss the opportunity of saving their money. You need to take care and not miss it so that when you efile 1040ez online you are sure that you did not miss any deductions and credits and hence saved all the money that you could from the Internal Revenue Service. Now to talk about this credit, you've probably been enjoying the fruits of this credit via reduced payroll tax withholding since spring. But to lock in your savings -- by reducing your tax bill by $400 if you're single or $800 if you're married and file a joint return -- you'll need to claim the credit on your tax return. You'll use the brand-new Schedule M to do so.

The credit is equal to 6.2% of your earned income, capped at $400 or $800. For single filers, it starts phasing out at $75,000 of adjusted gross income and dries up at $95,000. The phase-out zone for couples is $150,000 to $190,000. So make sure that you follow the correct procedure and the correct forms here and not lose your hard earned dollars. Credits are in a way more important than deductions because they can save your money dollar for dollar.
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