Are moving expenses tax deductible?

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Are moving expenses tax deductible?

It’s okay to curse at heavy furniture, probably when doing your taxes too. Photo is Creative Commons (CC BY-SA 2.0) by Tara Hunt.

Moving can be a stressful and chaotic time, but when it is all over not only will you be comfortable in a new home, but you could also qualify for a nice tax deduction for your efforts. While you should of course talk to a Tax professional, if you are qualified, you may deduct the expenses of:

  • Packing and transporting household goods
  • Mileage for use of your own car (or gas and oil expenses)
  • Tolls and parking fees on the trip
  • Up to 30 days’ storage of household goods
  • Disconnecting and connecting utilities
  • Transportation and lodging for yourself and members of your household while traveling to the new home

Of course, not all moves are deductible. In order to deduct your moving expenses you have to meet two tests:

TIME – You must being working as a full-time employee within 13 weeks of your move, and you must work at least 39 weeks during the 12 months after your move. And it doesn’t matter wheter you were transferred by your employer or you took a brand new job.

DISTANCE – To meet this test, your new job has to be at least 50 miles further from your old home than your old job was. If you didn’t have a job before the move, your new job has to be at least 50 miles from your old home.

Consult a Tax Adviser to see if you qualify!

By | 2017-03-13T15:54:53+00:00 January 29th, 2013|Advice|Comments Off on Are moving expenses tax deductible?