IRS Deductions for Moving

If you moved for work-related reasons, you might be able to deduct certain expenses from your taxable income. This is an above-the-line deduction, which means you can still take the standard deduction as well.

Mileage Expenses

You can deduct certain expenses related to your move. You can deduct the mileage for driving from your old home to your new home at the annual rate as well as any tolls you paid along the way. For 2009, the rate is 24 cents a mile.

Other Expenses

You can deduct expenses for packing and shipping your personal belongings. If you had to store your belongings, you can deduct up to 30 days' worth of those costs.

Unreimbursed Expenses

When you claim the deduction depends on whether your employer will reimburse any of your expenses. If you will not be reimbursed, you should claim the deduction in the year you incurred the moving expenses.

Reimbursed Expenses

If you will be reimbursed, you can choose to deduct them when you incur them or when you are reimbursed. If you claim the deduction in one year and are reimbursed in another, you must include the reimbursement in your taxable income.

Eligibility

To qualify, your new job must be at least 50 miles from your old home and your new home must be close to your new job than your old home. Finally, you must work at least 39 weeks in the first year you are in your new home.

References

• IRS Moving Expenses
• 2009 Mileage Rates