How to Deduct Moving Expenses From Your Taxes

Your moving expenses may be deductible on your federal income tax return under certain circumstances.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• IRS Forms
• Financial Statements
• Financial Calculator
• Paper And Pencils
• Computers
• Tax Preparation Software

1. Use the following criteria to determine your eligibility for a tax-deductible move: 1) your move must be related to a job (or job transfer) at least 50 miles further away from your home than your old job; 2) you must be employed at the new job at least 39 weeks during the 12 months after your move.

2. Deduct moving expenses from your tax return if you meet the eligibility requirements. Include packing and moving costs, travel expenses to your new home, storage of your goods for up to 30 days and other eligible expenses.

3. Save all moving receipts for tax purposes.

4. Consult with your tax advisor to make sure your moving expense deductions are valid.

Tips & Warnings

• Check with your tax advisor about possible exclusions to eligibility requirements, especially if you are a member of the armed forces.

• Some moving expenses are not deductible, such as the costs of breaking or obtaining a lease, buying or selling a home, or searching for a new home. Consult a tax advisor for more information.