Tax Deductible Moving Expenses

The words Moving Day and a date circled on a calendar with a redMoving is really expensive, not to mention disruptive to go through.

If you’re moving because of a job change, some of that expense may be tax deductible which will help take some of the sting out of the mover’s bill and packing expenses.

Moves that qualify for the deduction can be for starting a new job or for doing the same job in a new location.

Here are the basic requirements:

  • Your move must be within one year of your job relocation
  • The new job location must be 50 miles further from new residence than your old job was from your previous residence.

For example, if your old job was 10 miles from your previous home and your new job is 60 miles from your new home, you’ll meet the requirement. If your new job is only 15 miles from your new home, you don’t meet it.

  • You have to work at your new job at least 39 weeks in the first year.
  • You must work a minimum of 78 weeks in the first two years.

Check out the IRS moving expense deduction publication or talk to your accountant for more details.