How much of your moving expenses are tax deductible?

Question

And what is deductible? Gas, mileage, hotel, truck rental, supplies, food, airfare? I moved due to job relocation, however my employer did not help with the move. I'd like to claim the expenses on my taxes.

Answer 1

The actual costs of moving you and your belongings are fully deductible. This would include your airfare, truck rental or movers, moving supplies, etc. If you are driving the moving truck yourself (i.e. U-Haul), then the gas and mileage incurred on the rental would be fully deductible as expenses related to shipment of household goods. The hotel related to the move would also be deductible, but meals would not be. Also note, if you are moving by car (i.e. driving), you can either deduct actual auto expenses (gasoline and oil), but you cannot deduct any repairs or depreciation on the vehicle. You can opt to deduct a standard mileage rate as well, but this rate is lower than the standard mileage rate used for business use of a car.

Moving expenses are reported on Form 3903 and are deducted from your gross income as an adjustment for adjusted gross income. They are not deducted as an itemized deduction and as such, does not require that you itemize in order to get the tax benefit of it.

Answer 2

If you moved because of a change in your job location or because you started a new job, you may be able to deduct your moving expenses if your move is closely related to the start of work. To qualify for the moving expense deduction, you must meet both the distance and the time tests, unless you are a member of the armed forces and your move was due to a permanent change of station.

Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was. Use the shortest distance of the most commonly traveled routes between these points. To determine this, first figure the distance between your former residence and your new job and then subtract the distance between your former residence and your old job. If the result is 50 miles or more, you have met the distance test. For example, if the distance from your former residence to your new job is 70 miles and the distance from your former residence to your old job is 5 miles, you will meet the distance test.

The second test concerns time. If you are an employee, you must work full–time for at least 39 weeks during the 12 months right after you move. 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 move. There are exceptions to the time test in case of death, disability and involuntary separation. For more information if you qualify to deduct moving expenses please refer to Publication 521.

If you meet the requirements, you can deduct the reasonable expenses of moving your household goods and personal effects to your new home. You can also deduct the expenses of traveling to your new home, including your lodging expenses. You cannot, however, deduct meals.

Moving expenses are figured on Form 3903 and deducted as an adjustment to income on Form 1040. You cannot deduct any moving expenses that were reimbursed by your employer.

For additional information, refer to the Form 3903 Instructions and Publication 521, Moving Expenses.

Answer 3

Moving expenses are a misc deduction on the Schedule A. they must be reduced by 2% of your adjusted gross income

If you moved because of a change in your job location or because you started a new job, you may be able to deduct your moving expenses if your move is closely related to the start of work. To qualify for the moving expense deduction, you must meet both the distance and the time tests, unless you are a member of the armed forces and your move was due to a permanent change of station.

Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was. Use the shortest distance of the most commonly traveled routes between these points. To determine this, first figure the distance between your former residence and your new job and then subtract the distance between your former residence and your old job. If the result is 50 miles or more, you have met the distance test. For example, if the distance from your former residence to your new job is 70 miles and the distance from your former residence to your old job is 5 miles, you will meet the distance test.

The second test concerns time. If you are an employee, you must work full–time for at least 39 weeks during the 12 months right after you move. 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 move. There are exceptions to the time test in case of death, disability and involuntary separation. For more information if you qualify to deduct moving expenses please refer to Publication 521.

If you meet the requirements, you can deduct the reasonable expenses of moving your household goods and personal effects to your new home. You can also deduct the expenses of traveling to your new home, including your lodging expenses. You cannot, however, deduct meals.

Answer 4

I suggest you read IRS publication on Moving expenses http://www.irs.gov/taxtopics/tc455.html

This is Publication 521 (2006), Moving Expenses http://www.irs.gov/publications/p521/index.html which spells out who is qualified and what can be deducted and what cannot be deducted

Provided you qualify, you can deduct the reasonable expenses of:

- Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and
- Traveling (including lodging but not meals) to your new home.

Answer 5

I think you can claim all of it-- but it has to be related to moving because of a new job. I'm not sure if it is subject to the 2% limit though. Check the IRS site, I know they have publication on this.

Answer 6

You can claim all expenses related to moving including storage, mileage, etc.