Is a Move Tax-Deductible?
- You may only claim moving expenses on your tax return if you moved for your work, whether you got a new job or were relocated by the organization you work for. If you decide to move for other reasons, even if it is to find work in a new location where work prospects look more promising, the IRS does not allow you to deduct your moving expenses from your taxes.
- Just because you moved for a new job does not mean you necessarily may claim the expenses from the move on your tax return. Your new work must be located at least 50 miles farther from where you were living than the job you had previously, requiring you to travel that much farther to and from work every day. If you were unemployed before you moved and moved to be closer to your new work, the location of your new work must be no less than 50 miles from your old house.
- You must satisfy the IRS' time test to claim moving expenses on your tax return. If you are an employee of a company, you must work no less than full-time hours at your new work for the first 39 weeks of the year. For those who are self-employed, they must work full time for at least 39 weeks during the first year in the new area and work full time for at least 78 weeks during the first two years in the area. You may receive an exception to the time test if you experienced an event like disability or involuntary separation after moving to the new area.
- The IRS does not allow anyone to claim moving expenses that were covered by an employer, and the employer does not report the expenses as part of your income. You may claim the expense of moving your belongings from your old house to the new one, 30 days storage of your belongings, shipping for your vehicle, lodging near your old and new houses and moving insurance costs. The IRS does not allow you to deduct the cost of meals during your move.
Work Related
Distance Test
Time Test
Expenses Covered
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