What Are Considered Reasonable Moving Expenses?
If you need to relocate due to a new job, you can deduct certain moving expenses on your income tax return. You have to meet several qualifications to deduct any moving expenses on your return. If you qualify to deduct moving expenses, you need to determine which of your expenses are considered reasonable by the Internal Revenue Service.
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Deduction Qualification
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The IRS uses three different tests to determine whether you qualify for deducting your moving expenses. The IRS looks to make sure that your move is a work-related expense. You are eligible for the deduction if you have moved within one year, are moving for a job or get a job after moving to a new area and the job must be 50 miles away from your original job location.
Employment Qualification
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You also need to work a specific amount of hours in your new job, once you have moved. You need to be employed full time for 39 weeks to qualify for a moving expense deduction. The weeks do not have to be consecutive as long as they fall within the same 12 month period. The full-time weeks may be taken at any number of employers, not just the one you moved for.
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Moving Expenses
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You can deduct packing and shipment of your household goods, but you may be limited by what the IRS deems to be a reasonable payment. You need to choose the lowest cost options for your deductions, such as moving by the most direct and cost-efficient option, in order to avoid any problems with taking the full cost of the deduction. Your household goods deduction also includes your personal effects. You can also deduct pet and car transportation expenses.
Travel Expenses
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The IRS allows you to deduct certain traveling expenses as you move to your new home. You cannot claim any meal or food expenses on the way, but you are able to deduct lodging fees as well as transportation expenses. Transportation expenses can be deducted for each person, but you may only deduct the expenses from one trip.
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