Tax Deductions

If you are moving for your job, some or all of the moving expenses may be tax deductions. Learn more about the requirements.

Tax Deductions for a Move

If you have moved for your job, it is possible that the expenses for your move will be tax deductible. This deduction can be a great help in lowering your taxes, helping you with your financial bottom line.

When putting in your moving expenses, there are several things that you must keep in mind. These requirements from the IRS are the guidelines that allow you know what is legally deductible on your tax return.

taxThe first thing to keep in mind is that the move must be due to starting a new job. However, if your new employer has reimbursed part or all of your moving expenses, the money that has been reimbursed is not applicable for a tax deduction.

The next thing to keep in the mind is the qualifications of distance and time. For the distance qualification, your new job must be at least 50 miles farther from your old home than the distance between your old job and old home. For example, if your old commute was 10 miles and your new job is 60 miles or more from your old house, then your move then becomes deductible.

For the time test, the IRS requires that you work full-time for a minimum of 39 weeks during the 12 months following your move. For those who are self-employed, the requirement is 78 weeks in the 24 months that follow the move. Members of the military who relocate due to military order or change of permanent station do not need to meet the time or distance qualifications.

According to the IRS, if you meet the requirements of time and distance, you are allowed to deduct “the reasonable expenses of moving your household goods and personal effects to your new home.” This includes the cost of travel and lodging as well as the cost of packing and shipping your personal property and household goods. The IRS does not include meals as part of your moving expenses.

In order to deduct your moving expenses, you can report them on IRS Form 3903 as well as on Form 1040 Line 26.

Author Bio: John is a professional blogger writes interesting articles about Travel and Movers and this article was researched and written with the help of Utah Mover.