Tax Deductible Moving Expenses

Tax Deductible Moving Expenses
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The cost of hiring cross-country movers can often be offset by moving tax deductions. Not everyone qualifies for moving deductions, however the IRS is pretty generous about allowing us to write off most of our moving expenses. Here are some basic things you need to know about moving deductions:

IRS Stipulations

There are a couple of parameters for writing off your moving expenses. The first, is that you must have moved for work. So you must prove either that your job relocated you or that you have worked full-time for 39 of the 52 weeks in your new city within the year after you moved. If you are self-employed or own your own business you must prove that you’ve worked full time for 78 weeks of the 104 weeks of the first two years in your new city.

The second parameter is the distance. You have to prove that your job and your former home are 50 or more miles apart. If you’ve moved so you or your spouse can take a new job, then you only have to prove that one of you is 50 miles from your original home.

What Can You Deduct

There are several things the IRS allows you to deduct as part of your moving expenses:

  • Packing and shipping your possessions
  • Moving insurance
  • Up to 30 days of storage
  • Cost of traveling including lodging to your new home
  • Cost of disconnecting utilities in your old home
  • Cost of hooking up utilities in your new home

However, keep in mind you cannot deduct moving expenses if they are covered by your employer.

The best thing to do when you’ve made a long distance move is to consult with your accountant about your tax deductions. These deductions may help you recoup the cost of your move.

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