Moving and Taxes – Can You Deduct Moving Expenses?

Did you know that when you move, there are instances in which you can actually deduct some of these moving costs from your taxes? Many people call us to handle their move, and they don’t realize this. However, with this being said, there are several restrictions that you need to keep in mind about these deductions. Working with an accountant is the best way to determine if you are eligible, however, here are just a few highlights for deducting your moving costs.

There are several allowable deductions that the IRS will allow you to claim, but only if you are moving due to work. These deductions can include:

  • Cost of packing and transporting the goods, even if you hire a professional mover
  • Costs of connecting and disconnecting utilities due to moving
  • If you had to pay extra to transport cars or pets, then this is also a deduction

There are several other deductions in which an accountant can help you with including the cost of traveling by car to your new home. However, in all of these situations, it is important that you have the paperwork to back up any of these deductions that you are making.

One of the main deductions not mentioned beforehand is the deduction for moving due to a job change. In situations in which your employer transfers you and pays for the move, you cannot make any deduction since you are not paying for this move. However, if you are having to pay for this move on your own, you must meet a few requirements in order to get any deductions. These requirements include:

  • The commute from your old home to the new job must be 50 miles longer than it was with your previous job
  • You must have been employed within the same area of your new home for at least 10 months before you can make these deductions. The goal of this requirement is to ensure that you are moving due to a job and not simply moving for the sake of moving

If you do move, be sure to talk to your tax preparer to figure out what you can and cannot qualify for. If you do have to move, be sure that you are taking advantage of the tax deductions that can come along with this.

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