If you are moving due to a job change, you may be able to deduct your moving expenses. You should know that there are tax deduction restriction. In order to learn if you can apply for tax deductions on your moving costs see if you are qualifying the requirements.
Take the Time and Distance Test
- The Time test suggests that you should work full-time for at least 39 weeks during the first 12 months immediately after your arrival to your new job area. Death, disability and involuntary separation are excluded from the ‘time rule’.
- The Distance test suggests that the new workplace must be at least 50 miles farther from your old home than your old job location was from your old home.
If you are an army member, and you are relocating due to military adjustment, you are not required to qualify the time and distance test.
Deductible Moving Expenses:
The non-reimbursed cost of moving household goods and personal effects to a new residence is permitted as a deduction in determining federal adjusted gross income. This includes:
- the actual cost of transportation or hauling from your old residence to your new one
- the cost of packing, crating and unpacking; and
- storage in transit (limited to 30 consecutive days) and valuation (limited to 30 consecutive days).
Deductible moving expenses include:
* The costs of shipping your automobile or boat.
* The costs of transporting your pets.
* The costs associated with connecting/disconnecting utilities during moving.
* The costs of moving your personal belongings from a place other than your old residence may be deducted, to the extent that it does not exceed what it would have cost to move them from your old residence.
* The family trip to the new residence is considered a direct moving expense and is deductible. This includes lodging, but not meals.
You may not deduct expenses in excess of a reasonable amount. Report non-reimbursed moving services expenses on 3903 Federal Tax Form.
Additional Moving Tax Deduction Help Resources:
- IRS Problem Solving Line: 1-800-829-1040
- IRS Publication 521 Moving Expenses website
