What Are Moving Expense Deductions?

Some moving expenses are tax deductible if you're required to move for your job.

When you move due to job or business relocation, you are allowed to deduct some of the moving costs from your federal income tax return. In order to qualify for deducting these moving expenses on your tax return, you must meet specific criteria as to why you have moved. If you're not sure whether a deduction is allowed or whether your move reasons qualify you for the deductions, consult with an IRS representative or a licensed tax professional.

Qualifying for Moving Deductions

If you need to move because your job requires that you relocate, because you have a new job in a different location, or because your business location must be moved, you can deduct some of your move expenses from your income tax return. The new job or business location must be at least 50 miles from the old location in order to qualify, and you must work full time at the new job a minimum of 39 weeks during the first year after the move. If you move for business purposes and you are self-employed, you must work at the new business location at least 39 weeks full-time for the consecutive two years following the move.

Packing and Shipping

If you pay to have your household items and personal effects packed and shipped by a company, you can deduct the costs for packaging and shipping from your taxable income. You may also deduct the shipping costs for vehicles and family pets.

Travel Expenses

The cost of traveling from your old home to your new home is tax deductible, as long as you take the most direct route between the two places. This deduction also applies if you package and transport your own household goods and personal effects instead of hiring a moving company. When traveling by car you may choose to deduct a flat mileage rate or an actual expense amount. Keep accurate records of gasoline, oil and other expenses incurred during the move and deduct the total, or use the flat rate of 16.5 cents per mile for the 2010 tax year. You may deduct lodging overnight during the move but you may not deduct the costs of meals.

Utility Expenses

You may deduct the costs incurred for turning off utilities at your old home and having them turned on at your new home.

Storage Expenses

If you need to put your household and personal items into storage before you move into your new home, you can deduct up to 30 days of the cost of the storage rental fees and storage insurance charges.

References

• IRS.gov: Topic 455 - Moving Expenses
• IRS.gov: Publication 521(2010) Moving Expenses