Are Moving Expenses Tax-Deductible?

A lot of people ask if moving expenses are tax-deductible, and for good reason, it can be confusing. Here are some guidelines to help you determine if you will qualify*.

If you are qualified, you may deduct the expenses of:

  • Tolls and parking fees on the trip
  • Up to 30 days storage of household goods
  • Disconnecting and connecting utilities.
  • Packing and transporting household goods.
  • Mileage for use of your own car (or gas and expenses).
  • Transportation and lodging for yourself and member of your household while traveling to the new house.

Not all moves are tax deductible. In order to deduct your moving expenses, you have to meet two tests:

     Time– You must begin working as a full-time employee within 13 weeks of your move, and you must work at least 39 weeks during the 12 months after your move. It doesn’t matter whether you were transferred by your employer or you took a brand new job.

     Distance- To meet this test, your new job has to be at least 50 miles further from your old home than your old job was. If you didn’t have a job before the move, your new job has to be at least 50 miles from your old home.

*Consult a tax adviser to see if you qualify.

 

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