Question

True or False - Liam just graduation from college. Because it is his first job, the cost of moving his personal belongings from his parents' home to the job site does not qualify for the moving expense deduction.

Answer 1

The statement is false because, under normal circumstances, moving expenses for a first job could qualify for a deduction if certain conditions are met. However, the Tax Cuts and Jobs Act has suspended the moving expense deduction for most taxpayers from 2018 to 2025, with exceptions for active duty military.

Step-by-step explanation:

The statement is False. Under the United States tax law, the moving expense deduction has been suspended for most taxpayers for tax years 2018 through 2025 due to the Tax Cuts and Jobs Act. However, this deduction still applies to active duty military members. If the law were not suspended, the cost of moving for a first job could potentially qualify for the moving expense deduction if the move meets certain distance and time tests. Specifically, the move must be closely related to the start date of the new job, the job location must be at least 50 miles further from the taxpayer's former home than the old job location was, and the taxpayer must work full-time for at least 39 weeks during the first 12 months immediately following the move.