Are Moving Expenses Tax Deductible?

Aside from being a whole lot of brain wrecking work of moving around furniture from one place to another, moving to a new place requires a whole lot of money. Costs for moving companies, prior deposits for your new lodgings and some new furniture or cleaning equipment you plan to buy can really put a strain on your bank account. Also, whatever the reasons are for your moving, there is an addition of one more common expense factor we must consider as well- taxes on moving expenses.

Relocating to a new place for a new job can be costly to many employees. There are some employers that must cover up your moving expenses but that doesn’t count in every case. However, there are certain aspects that allow your moving taxes to be deducted-on the condition that you fulfill the proper forms and requirements.

Eligibility for Moving Expenses Tax Deduction

There are certain criterias that you must fit under to claim your rights for the tax deductions-IRS allows taxpayers to deduct a reasonable amount of moving expenses tax if the following requirements are fulfilled.

The distance is one of the criteria. That means that the location of your new workplace should at least be farther away from your previous residence than your old workplace location. If you are planning to relocate just to save time on your commute, then the tax deductions will not apply to you. Therefore, if you want to come under this criterion, measure the distance between your old home and old workplace. Additionally, if the second distance is longer than the first distance measured by 50 miles, than you fall under the Distance Test category.


You must relocate to your new residence within one year of the time you start working at your new place. Basically, to qualify for tax deduction, the timing of your move should occur simultaneously with your new workplace location and be closely related to the time you begin your employment. If you start working a few months after you move to your new home or if you start working and then move into your new residence after a few months, both satisfy the ‘closely related to starting work’ criteria.  


IRS requires you to go through another category-the Time Test. You need to be able to work full time at your new location to follow through this test. You should know that there are different working time durations set for both types of employees- an employee working under any employer and a self-employed person working on their own business. For an employee working for an employer, the required time to work full time is at least 39 weeks for the first year. You should keep in mind that these 39 weeks do not have to be consecutive or even under the same employer. For someone who is self-employed, the time duration required for them to work is at least 39 weeks during the year of their move AND 78 weeks during the 2 year period following their move.

There ARE Exceptions

There are a few people who are exempted to follow through these categories to claim their moving expenses deduction taxes. These people involve active military officers who relocate to new stations, surviving family members of the person who worked abroad of the United states, people relocated back to United States after retiring from their work abroad and people who lose their job due to a disability they start suffering from.

Moving Costs that are Tax Deductible

You are allowed to deduct traveling costs to your new home whether it should be costs of the airfare or car travel. As a bonus, the whole deal includes the transport expenses of your family members who are relocating with you. Furthermore, you can also deduct the cost of the transportation expenses of moving your personal possessions from your previous home to your new residence- including the costs regarding with the shipments and packings. For information on how to make your move easier, get some help for your moving plans.

Moving Costs that are NOT Tax Deductible

There are certain conditions that do not provide any tax deductions, so you should be cautious in avoiding these conditions. Having meals during moving are not taken under the tax deduction rule. Moving into a temporary home before settling into your permanent residence also does not befall under rules that can deduct your moving taxes. Furthermore, some of the other few acts that don’t benefit you into getting a deduction on your moving expenses taxes are upgrades on your new home, required deposits for getting into a new lease or loss of deposit due to any damage or neglect in maintaining the conditions of your new accommodation.

Moving is a huge task. It is not only about packing your belongings in boxes and leaving, but you have to make sure all the expenses are taken care of ahead times. It is always better to be prepared than to have things done at the last moment. You have to make sure that your move is simple and less expensive.

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