Are Moving Expenses Tax-Deductible?

Jul 9, 2018 | Blog

Deducting Moving Expenses from Your Federal Taxes Until the End of 2018

Laws will be changing in January of 2019. Please see link below.

See the IRS rules regarding deducting moving expenses.

Did you know that in many cases, the moving expenses incurred can be deductible from your federal income taxes? If you moved due to a change in employment or business location, started a new career or business, you may be able to deduct “reasonable” moving expenses.

According to the International Revenue Service (IRS), one must qualify for the deductible expenses by satisfying two criteria.

Moving Deductions Criteria

First, under the “distance test”, your new job must be at least 50 miles farther from your old home and old job location and residence. If you have no previous workplace, your new job must be at least 50 miles from your old home.

The second criteria would be the “time test”. If you are an employee, you must work full-time for at least 39 weeks during the first 12 months right after you arrive in the new home or general area of your new job. If you are self-employed, you must work full-time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive. There are exceptions to the time test in case of death, disability, and involuntary separation. Please review the link below as well as speaking to a Certified Public Accountant or Tax Preparer for a list of requirements from the IRS.

If you are a member of the Armed Forces and your move was due to a permanent change of station, you do not need to satisfy the distance or time criteria. We at Element Moving and Storage are PROUD supporters for our Military Forces. THANK YOU for Serving our Country.

Moving Deductible Expenses

“Reasonable Expenses” according to the IRS include the cost of packing and transporting your goods and effects. The cost of storage and insurance on these items and the cost of connecting and disconnecting utilities while moving household goods and personal effects are also found to be reasonable expenses. As for the travel to the new home, reasonable expenses are the cost of lodging and transportation cost of the move from the old to a new house.

Meals are not deductible as an expense. Along with meals, pre-move house hunting and entering into or breaking a lease are not deductible. The standard mileage rate for moving expenses for 2013 is .24 cents a mile plus any parking and tolls fees one might incur.

Book a Free Moving Quote

Element Moving and Storage will be happy to provide you with our boutique moving services. We look forward to helping you with your moving needs and we are always looking out for the financial and cost reduction savings of our clients.

For all your move-related questions, please contact us to schedule a free moving estimate.