What Is the Dislocation Allowance on Taxes?

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    Moving Household Goods

    • You can deduct moving expenses for household goods including paying moving companies or renting moving trucks. All packing and unpacking expenses count as deductions. You can also count moving supplies such as boxes and tape. Household goods include movable property owned by the taxpayer.

    Storage

    • You may deduct expenses for storing your household goods as part of the moving process. If your new residence is not ready when the goods arrive, and you must put them in storage, this cost and later delivery to your residence can be deducted from your taxes. Any additional crating required by the mover for storage counts as a deduction.

    Travel

    • Travel to your new residence remains tax-deductible. This includes lodging, gasoline and any other travel-related expenses. You cannot deduct meals during travel. Travel must be reasonable. For example, sightseeing trips that take you off the direct route to your new home are not tax-deductible. Expenses for only the shortest route must be deducted if you take side trips.

    Utilities

    • You may deduct the cost of connecting and disconnecting utilities if they are necessary for the move. You should not count refundable deposits. Hook-up fees and service charges qualify as tax deductions, as do wiring and gas line inspections.

    Military Dislocation Allowances

    • Military personnel do not have to meet the distance test. The first move after enlistment cannot be deducted. You subsequent moves to permanent duty posts can be deducted. This includes expenses for moving your spouse and dependents. The final move after discharge cannot be deducted.

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