If you’re moving due to a job transfer or change, your moving expenses can be deductible as an above-line tax deduction. Here are the IRS Rules:
- Move must be closely related to start of work Generally,
you can consider moving expenses incurred within one year from the date you
first reported to a new location, as closely related in time to the start of
- Distance Test Your move meets the distance test if your new
main job location is at least 50 miles farther from your former home than your
previous job location was.
- Time Test You must work full time for at least 39 weeks
during the first 12 months after you arrive in the general area of your new job
location, or at least 78 weeks during the first 24 months if you are
self-employed. If your income tax return is due before you’ve satisfied this
requirement, you can still deduct your allowable moving expenses if you expect
to meet the time test in the following years.
- Travel You can deduct lodging expenses for yourself and
household members while moving from your former home to your new home. You can
also deduct transportation expenses, including airfare, vehicle mileage, parking
fees and tolls you pay to move, but you can only deduct one trip per person.
- Household goods You can deduct the cost of packing, crating
and transporting your household goods and personal property. You may be able to
include the cost of storing and insuring these items while in transit.
- Utilities You can deduct the costs of connecting or
- Nondeductible expenses You cannot deduct as moving
expenses: any part of the purchase price of your new home, car tags, drivers
license, costs of buying or selling a home, expenses of entering into or
breaking a lease, security deposits and storage charges except those incurred in
- Form You can deduct only those expenses that are reasonable
for the circumstances of your move. To figure the amount of your moving expense
deduction use Form 3903, Moving Expenses.
- Reimbursed expenses If your employer reimburses you for the
cost of the move, the reimbursement may have to be included on your income tax
- Update your address When you move, be sure to update your
address with the IRS and the U.S. Postal Service to ensure you receive refunds
or correspondence from the IRS. Use Form 8822, Change of Address, to notify the