How to Know Which Moving Expenses Are Tax Deductible
If you have moved because of a job, either because you started a new job or were relocated in your current job, you can most likely deduct all of your moving expenses from your taxes during that tax year. In order to be eligible, you need to have moved at least 50 miles farther from your old home to your work, or if you are starting a new job, you must move 50 miles away from your old house.Secondly, you must work full time for at least 39 weeks after starting your new job or relocating. This varies slightly if you are self-employed, so be sure to discuss it with your tax preparer.
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Instructions
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Make a list of what you can deduct. You can deduct the cost of transporting your personal goods, including transitory storage expenses for either domestic or international relocation. You can also deduct travel expenses, including lodging but not meals, to your new home.
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Keep your receipts if you are traveling by car. If you are traveling to your new home by car, you can deduct the actual expenses such as oil and gas. You must keep accurate receipts for these expenses. You can also deduct the federal mileage allowance (see the IRS website for a current rate).
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Create a log of family member expenses. You can deduct expenses for the members of your household. These must be people who will be living in your new home.
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List household good expenses. You can deduct the cost of packing, crating, or otherwise preparing goods to be shipped. You can also deduct transport costs for pets or if you are shipping a vehicle. Utility connection and disconnection fees are also deductible.
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Deduct your storage costs. You can deduct up to 30 days of storage between the day you leave your last home to the day you arrive in your new home.
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Know what you cannot deduct. Expenses related to the purchase or sale of a home, house-hunting expenses, security deposits, return trips to your old home, car registration fees, mortgage penalties or penalties from breaking a lease.
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Tips & Warnings
Keep detailed records of mileage.
Keep all receipts related to your move in a separate file.
This is not a substitute for professional tax advice. If you have questions, please discuss them with a tax attorney.
