Moving Tips & Resources
How to Deduct Moving Expenses From Your Tax Return
Do You Qualify?
If you recently moved to a new city to start a new job or were relocated by your current employer, the IRS allows you to deduct reasonable moving expenses as an adjustment to gross income on your tax return. But, only if certain conditions are met. Use this checklist to find out if you qualify:
- The change in job location would require you to commute at least 50 miles (one way) further to work, had you not moved. Those 50 miles must be based on the shortest traveled route to destination.
- The move occurs within one year of the date you begin work at the new location.
- You work full-time (for any employer) in the general vicinity of the new location, for at least 39 weeks during the 12-month period, following the move.
- If you are transferred, laid off or become disable before the end of the 39-week period, you still may claim moving expenses.
- If you are self-employed, you must work full-time for a total of at least 78 weeks during the 24 months immediately after your more.
What Moving Expenses Are Tax Deductible?
If you have moved within the US or from a foreign country to the US and you have met the aforementioned qualifications, the following expenses can be deducted from the gross income on your tax return:
Packing & Transportation
You can deduct any expenses incurred from packing, crating and transporting your family’s personal effects from your former home to your new one. Moving expenses include moving pets and vehicles.
You can deduct the cost of connecting or disconnecting utilities because you are moving your home, appliances and belongings.
For moves within the US, the deduction of in-transit storage expenses is limited to the cost of 30 consecutive days of storage after the load date and before delivery to your new home. This includes storage of vehicle, boats, etc. Further details are available from the IRS.
You can deduct the cost of your personal*, one-way transportation and lodging. Traveling by car to your final destination (up to 350 miles per day at $0.24 a mile) is a deductible expense. The trip should be the shortest, most direct route. Parking fees and tolls paid in traveling can also be deducted. It is not necessary for all family members to travel at the same time. However, the expenses, for only one trip per person, can be deducted.
*If you are self-employed, you may deduct Transportation & Travel expenses, if you have already made specific arrangements to operate your business at the new location. There is no cap on the maximum deduction allowed for transporting household goods or for family travel costs.
If you ship your vehicle, you can deduct the overall cost and expense of valuation.
Moving expenses are deductible only as adjustments to gross income. Save all of your receipts, bills and credit card statements to keep an accurate record of all expenses paid. To support your claim for deductions, you should use IRS Form 3903-Moving Expenses to indicate the type and cost of moving expenses incurred. However, you should consult your tax advisor to make sure that you are using all applicable forms.
For more details, click here to download IRS Publication 521-Moving Expenses: http://www.irs.gov/pub/irs-pdf/p521.pdf