Deducting Moving Expenses from Your Federal Taxes

Hooray! There is a serious positive side to moving! If you are moving for business, (change your job location, or starting a new job or business, or an entrepreneur relocating) you are applicable for deductions for your moving expenses.

Expenses that can be included (according to the IRS):

  • Packing and transporting of your goods and effects
  • Cost of storage and insurance
  • Connecting and disconnecting utilities
  • Personal goods
  • Cost of lodging and transportation for the move itself
  • Mileage: 16.5 cents per mile, plus parking, fees and tolls

Expenses that are not considered deductions:

  • Meals
  • Pre-move house-hunting expenses
  • Entering or breaking a lease
  • Any moving expenses that were reimbursed by employer

If you fit the criteria, your new location must be at least 50 miles farther than your old location of which you worked. If your home was your office, the same applies from home to home.  Also, you must work 39 full time weeks during the first 12 months upon arriving in your new location. Self employment applicants must work full time for at least 39 weeks during the first 12 months. These criterion do not apply if you are a member of the military.

To get your deductions organized and ready for the IRS, fill out on Form 3903 (PDF) and also use form Form 1040 (PDF) For more information, check out the IRS website by visiting this link