Can I Deduct Moving Expenses on My Taxes?

You can deduct moving expenses if you meet the qualifications established by the IRS in Publication 521, Moving Expenses. Keep your receipts for documentation when you file your taxes, and consult a tax professional for help with your specific situation.

Qualifications

In order to deduct moving expenses, you must move to take a new job. You must also meet the time and distance tests.

Time Test

You must work full time for 39 weeks during the 12 months after your move. You do not have to work for the same employer for all 39 weeks, and you do not have to work 39 weeks in a row.

Distance Test

Your new job must be located at least 50 miles farther away from your former home than your old job. For example, if your previous job was located 10 miles away from your former home, your new job must be located at least 60 miles away from your former home.

Deductible Expenses

If you meet the time and distance tests, you can deduct your moving expenses such as the cost of moving your household goods and travel costs to your new home. You cannot deduct the expenses of purchasing a new home, selling your old home, house-hunting, taxes or home improvements.

Exceptions

You can only deduct expenses that your employer does not reimburse. Check IRS publication 521 for regulations that explain how to report reimbursed expenses on your tax return (see Resources).

Resources

• IRS Publication 521, Moving Expenses