Are your moving expenses tax deductible?

HomeMoving TipsAre your moving expenses tax deductible?
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If you’ve landed a job that forces you to move to a new residence, you might be a little bit stressed but one thing that may ease your tension is you may have some deductible moving expenses. Some employers cover the costs of your move but if that isn’t the case for your move, you still may be eligible to be reimbursed by the Internal Revenue Service. Of course not everyone is eligible to deduct moving expenses from their move. There are requirements you must meet to be able to process the deductible moving expenses.

To get the benefit of deducting some of your moving expenses you need to meet these three guidelines. The first guideline you’d have to meet is the timing of when you move into your new home. You would have to move into your new home within one year of your starting date at your new job. If you failed to do this, you must show proof that there were reasons beyond your control that wouldn’t allow you to move into your new residence.

The next rule/guideline is known as the distant test. Your new job must be further than 50 miles from your old home. It only takes your old home into consideration because it’s only logical. There is no reason to move into a new home if your new job is still relatively close to your old home.
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Another category you must fall into is what’s known as the 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.

If you fall into these three categories you have a good shot at having your moving expenses deducted from your taxes.

Don't get too comfortable deducting your moving expenses, there are some items that you can’t deduct like the moving expenses of buying or selling your home, including mortgage fees and even paints. Some other things that you can’t deduct from your moving process are pre-move house-hunting expenses, any real estate taxes that you might come across, any security deposits and much more.

Even if you choose not to use a moving company and their trucks because you decided to do your move yourself, traveling by car, you can still deduct moving expenses. When you move by car you can deduct gas/oil for your car and other actual expenses.

You can find more detailed information on deductible moving expenses on the Internal Revenue Services Web Site, if you qualify and other random conditions you might have.

If you are choosing to move outside the United States you cannot deduct moving expenses for the obvious reasons that your future income will not be subject to U.S. Taxation.

 
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