International Move

[cunningjames]

My wife and I moved from the UAE back to the US in March.

What can we deduct for moving costs?  We both switched jobs so we moved for employment purposes.  Can we include costs for relocating our pet as well?  Can we deduct a loss on furniture sold or donated in the UAE?

Do we get a pro-rated FEIE for our time overseas as we had already established bona fide residency in another country?

We are both W2 employees but may have some 1099 income.  Can we use the outfitting of the home office to offset some of the 1099 income?

[Nick-K-EA]

Moving expenses are no longer deductible, unless you are a military member moving under orders.

If you were a resident of the UAE for part of the year, you may qualify for a pro-rated foreign earned income exclusion. Details on that can be found in this IRS article.

You can deduct expenses for establishing and using a home office.  It's important to determine whether you meet the criteria for this deduction.

[cunningjames]

It looks like we can claim moving costs for our state (MA) income taxes.  

https://www.mass.gov/info-details/moving-expense-deduction

Is this correct?

[Nick-K-EA]

A few states did not adopt the federal disallowing of the moving expense deduction. Massachusetts is one of them. If you moved to Massachusetts, meet their criteria for the deduction, and have expenses for which you were not reimbursed, then you may take the deduction. TurboTax will automatically determine whether you can receive this state deduction, based upon your answers to qualifying questions.