Is My Move Tax-Deductible?

The answer is Yes, IF you meet certain stipulations.  You must meet three requirements in order to deduct your moving expenses.

1. You are moving due to a job change.

2. You are moving at least 50 miles farther from your former home than your old main job location was from your former home. (You can find a worksheet on the IRS website that can help you determine if your move qualifies for the distance test.)

3. You must meet at least one of two time tests.
     1) As an employee:  You must work full-time at least 39 weeks during the first 12 months upon arriving at your new job.
     2) For self-employed persons:  You must work full-time at least 39 weeks during the first 12 months and a total of 78 weeks during the first 24 months upon arriving in the general area of your new job.

What are some common moving expenses that can be deducted?

• The moving expenses will need to be reasonable.  Reasonable moving expenses would be the actual cost you incurred while traveling to your new location.  Meaning you must take the shortest route to get to your final destination.  You may not be covered if you decide to take the scenic route so you can stop off and visit various locations along your way.

• If you drive your own car to the new destination you can normally deduct your gas and oil charges.  You must keep accurate records of each.  You may also be able to deduct your mileage.  You would want to check with a tax professional to see what the mileage rate is.

• You can deduct the cost of your lodging while driving to the new destination.  This is limited to one trip per family member.

There are moving expenses that may NOT be used as a tax deduction.  Below is a list of just some items:
• The cost of draperies
• The cost of carpet
• Loss on the sale of your home
• Return trips to your old residence
• Improvement you make on your home before selling it
• Any part of the purchase price of your new home
• Closing cost or mortgage fees
• Pre-move expenses.  Example:  Gas or mileage for when your were looking for a new home
• Meals
• Temporary living expenses