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Moving Expenses and Tax Deductions Category: Moving Tips
 
Posted By:
Jean
4/9/2008
2:11:02 PM

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 tax deductible moving expenses?

  • Actual Travel Cost. 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.
  • Gas charges. 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.
  • Lodging. You can deduct the cost of your lodging while driving to the new destination.  This is limited to one trip per family member.

The items listed below cannot be used as a moving expenses tax deduction:

  • Draperies
  • 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

If you need more information about moving expenses and tax deductions, visit the IRS at http://www.irs.gov/taxtopics/tc455.html 

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Comments
Name: Morgan Ellis
Date: 6-13-2008
My husband is being deployed to Iraq and me and my child are moving back to our hometown for 6 months. I will be seeking employment when I arrive. Is this covered for a tax break?
Name: Ro Sammis
Date: 8-30-2009
If I have owned a home for 20 years and am moving for the 1st time in 20 years do I qualify for the 8000. tax credit?
Name: Mary
Date: 9-1-2009
No, the rules say, you have to have not owned a home in the last 3 years.
Name: kw
Date: 2-23-2010
ro sammis you qualify for the 6500 tax credit!
Name: Leslie Manthey
Date: 6-5-2011
We are moving a very long distance, from Illinois to South Carolina. So we are hiring movers to get it all there. Is that cost deductable?
Name: Autumnn
Date: 6-6-2011
Leslie--your move would be cost deductible if you're moving due to a job change and if you're a full-time employee. Be sure to check with your tax preparer to confirm and make sure you claim all legitimate moving expenses to maximize your deduction!
Name: sandra
Date: 7-18-2011
I am getting divorce, moving from CA to SC and I am disable due to a forced medical abortion and I will need surgery and I will be sick for few moths after that but I get alimony so I will need to pay taxes and a lot of money to move there will this be tax deductable I will have all the medical records of the surgury that will prevent me for working.
Name: Autumnn
Date: 7-19-2011
Sandra, I would suggest speaking with your tax preparer/advisor for more information regarding your specific situation. If I can help with any questions/concerns about planning your move, please let me know!

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