How to Take a Moving Tax Deduction
Here’s some welcome information for when you go new places in your career. If your job requires you to move, your moving expenses might earn you a tax deduction. Federal Tax From 3903 explains in detail how you can qualify. In brief, deductible IRS moving expenses meet three conditions:
- You incurred the moving expenses within one year from the date you first report to work.
- Your new workplace is at least 50 miles farther from your previous home than your prior workplace was.
- You work full-time for an employer in the general vicinity of the new job location for 39 weeks during the 12 months right after your move. If you are self-employed, you must also work at least 78 weeks during the 24 months right after your move.
If you do not satisfy the work requirements by the filing deadline, you may still deduct your moving expenses—if you expect to meet the requirements in the next tax year. If you claim the deduction but fail to satisfy the requirements—you will need to report the amount as income in the next tax year (or amend your prior return).
If you are moving to another country, or if you are a member of the military, talk to a professional tax adviser about exceptions that may affect you.
What moving expenses are deductible?
According to the IRS, you may deduct reasonable costs for moving your household goods and personal effects to a new home. The deduction applies only to costs for which you have not been reimbursed.
- packing, crating and unpacking
- valuation coverage and storage in transit (up to 30 days each)
- shipping your automobiles and boats
- transporting your household pets—dogs, cats, tropical fish, etc.
- connecting and disconnecting utilities for the move
You may deduct expenses for moving your personal belongings from a place other than your main residence (for example, a second home or relative’s home). However, the cost cannot exceed what it would have cost to move them from your main residence. The family trip to your new residence is also deductible, including costs for lodging (but not meals).
All American Van Lines is among the most recognized and called-upon movers in the United States. We’re the most trusted moving partner of corporations—plus a respected choice of military and government customers. We are pleased to share this information with you as you prepare for a successful move. However, it does not include all aspects of federal tax law, nor is it intended as tax advice; please talk to your tax professional.