So, I think this has been covered before, but I can't seem to find it. I've read all the irs publications regarding claiming moving expenses and we qualify, however I had heard that we might not be eligable because residents are paid a 'stipend' not salary. Does anyone know if this is true? I'd love to claim the expenses, but don't want to have the irs knocking on my door claiming residents aren't really being paid a salary. :anyolne:
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Taxes - Deducting Residency Moving Expenses
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Residents are not paid a stipend, it is a salary. If it was a stipend we wouldn't have to pay some taxes, Mayo is currently suing the IRS to change residents to students rather then employees, but currently the IRS sees residents as employees. So yes, moving expenses are deductible in my opinion.Wife to NSG out of training, mom to 2, 10 & 8, and a beagle with wings.
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You may want to consult an accountant. According to our accountant, moving expenses from going from medical school to residency are not deductable because you aren't going from a "like job" to a "like job". IE - being a medical student is not considered a job and the same as being a resident. But, you can deduct your expenses from going from residency to fellowship/attending/post-residency job.
However, if you were employed during medical school and are employed now, you might be able to deduct your expenses if you are doing a similar job. We were able to do this for us - even though the reason we moved was because of DH's job (residency) and not mine.Cranky Wife to a Peds EM in private practice. Mom to 5 girls - 1 in Heaven and 4 running around in princess shoes.
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Originally posted by house elfI do think that residency to fellowship is treated different than med student to resident because of the like job to like job requirement.\
Kellymarried to an anesthesia attending
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Originally posted by house elfI do think that residency to fellowship is treated different than med student to resident because of the like job to like job requirement.\
Kelly~Jane
-Wife of urology attending.
-SAHM to three great kiddos (2 boys, 1 girl!)
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Originally posted by alisonOriginally posted by house elfI do think that residency to fellowship is treated different than med student to resident because of the like job to like job requirement.\
Kelly
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Originally posted by *Lily*What if I am staying with my company but moving into a different career path? They don't offer relo, but heck, if I'm moving....
I'll check with my brother in law I guessWife to NSG out of training, mom to 2, 10 & 8, and a beagle with wings.
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Thanks for all the input. This is precisely why I was confused. Why can't they make these publications easy to interprete. This is what I read on the irs website in pub 521.
"This publication explains the deduction of certain expenses of moving to a new home because you changed job locations or started a new job.
You can deduct your moving expenses if you meet all three of the following requirements.
1. Your move is closely related to the start of work.
2. You meet the distance test.
3. You meet the time test."
We fit the requirments. I couldn't find any language that requires one to be employed before moving or in the same field (although dh has held jobs during med school summers) in order to claim the expenses. So, am I just interpreting this wrong or did I miss something?
Thanks!Wife to Hand Surgeon just out of training, mom to two lovely kittys and little boy, O, born in Sept 08.
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When we went from Med School to Residency, we itemized and listed our moving expenses as a deduction. We did end up getting a mini audit for that tax year. We think, because of having deductions for lifetime learning credits (both his and mine) and then both changing jobs, we had a lot of "red flags". After the mini audit, the IRS ended up owing us money, and there was no wrongdoing on our part. So, I would definitely be comfortable writing off our move if we had to do it again.-Deb
Wife to EP, just trying to keep up with my FOUR busy kids!
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Thanks Deebs. My worries are gone! We are taking the education credit for d'h's tuition that we paid last January, but other than that & the moving expenses it was pretty straight forward. Thanks!Wife to Hand Surgeon just out of training, mom to two lovely kittys and little boy, O, born in Sept 08.
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Originally posted by idesThanks for all the input. This is precisely why I was confused. Why can't they make these publications easy to interprete. This is what I read on the irs website in pub 521.
You can move from no job to a job and deduct moving expenses as long as your move fits the requirements.
I thought it was pretty straightforward and I asked around last year and got it confirmed by a random accountant on the Internets.Alison
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