Your moving expenses may be deductible.
If your relocation was brought on by a new job, or if you changed jobs during the process, you may be eligible for a tax break. See if your relocation meets these three simple IRS requirements:
- Distance Test. Your new workplace is at least 50 miles further from your previous residence compared to your previous workplace. Example: If your previous workplace was 5 miles away from your previous residence, your new workplace must be at least 55 miles from that same residence.
- Time Test. You must work full time at least 39 weeks during the 12 months following your move. If you are self-employed, you must work full time for the same 39 weeks — plus you must also work at least 78 weeks during the first 24 months after your move.
- Cost Test. Your cost for the relocation must be reasonable and typical. Note: If your relocation was paid for by your company, consult with your HR department as tax ramifications may still apply.
Additional moving-related expenses that may be deductible:
- Moving, packing and crating of household goods
- Storage expenses (in transit, 30 days before or after move, or for international moves)
- Traveling to your new home (lodging included, but not meals)
- Parking fees
- Moving expenses for you and your household
- Transporting pets
- Shipping a vehicle
Downloadable IRS Forms for Moving Expenses
- Form 521 – Moving Expenses
- Form 3903 – Moving Expenses Publication For a more detailed outline on deductible moving expenses or up-to-date tax information, visit www.irs.gov.