Grants for Relocating for a Job
If you work for a company with multiple locations, your employer may ask you to relocate. You also may need to relocate if you lose your job and are unable to find work near your current residence. Regardless of why you must start a job somewhere else, you may be able to obtain financial assistance in the form of grants, allowances or tax breaks.
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Grants for Relocation
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If you are the owner of a business, you may be able to obtain a grant to relocate if you are moving your business to a new state. Some states, such as New Jersey, offer relocation grants as incentives to draw businesses into the area. To receive such a grant, your relocation must typically create a minimum number of new jobs in the state, and your company's previous location must be outside the state's boundaries.
Employer Incentives
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If your employer has requested you to relocate as part of your current employment, he may offer to pay a portion of your moving expenses. According to CNN Money, some employers may be willing to pay up to $10,000 of expenses for a relocating employee. Expenses that an employer may agree to reimburse include the cost of travel, moving your belongings and temporary housing. Some employers may even offer cash relocation incentives if the area to which you are moving has a high cost of living.
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Tax Benefits
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If you move in connection with a new job, you may qualify to deduct a portion of your moving expenses from your taxable income. To qualify for a moving expenses deduction, you must move to a location near your new job, and you must move near the time the job begins. Your new job also must be at least 50 miles further from your previous residence than your old job was. Finally, you must work full time during at least 39 weeks of the first year after your move.
Considerations
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If you claim a tax deduction for a work-related move and you don't meet the 39-week requirement, you must typically amend your tax return and remove the deduction. If you sold your home when you moved and applied for the discharge of a federal tax lien, you may be able to obtain an allowance for relocation expenses if you can show that you aren't able to afford the move. However, you can qualify for this allowance whether or not your move relates to a new job.
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