Moving Expenses: What you can Write off on your Taxes

 

There are a lot of expenses associated with moving, from packing supplies to mileage and gas to moving insurance. Come tax time, you understandably want to ease the burden of what you owe, so it makes sense to claim deductions in regards to your move.

Restrictions

As with anything else, there are restrictions to keep in mind. According to the IRS, you can claim moving expenses if you meet these three requirements:

  • Your move is closely related to the start of work: This encompasses both time and place. You are allowed to claim expenses if you move within one year of the start date of your new job at the new location. In regards to place, if the distance from your new home to the new job location isn’t more than the distance from your former home to the new job location, you can deduct the moving expenses. However, you can deduct these if you are able to show that you must live at the new home in order to remain employed or if you will spend less time or money going back and forth from the new home to the new job.
  • You meet distance requirements: Your new job location must be at least 50 miles farther from your old home than your old job location was from your old home.
  • You meet time requirements: There are two separate requirements for self-employed people and employees. For self-employed people, you must work full time for at least 39 weeks during the first year and at least 78 weeks during the first two years after arrival at the new job location. For employees, you have to have worked full time for at least 39 weeks during the first year after your arrival at the new job location.

Deductible Moving Expenses

If you meet the above qualifications, you can deduct the following on your taxes:

  • Household goods and personal effects (packing, transporting, crating).
  • Traveling (does not include meals) to your new home. Includes lodging.
  • Reasonable expenses directly related to your move. For example, the travel cost from your old home to the new one should be the most direct route possible by the most reasonable form of transportation. If you stop off on your route to the new destination to do some sight-seeing, for example, those expenses cannot be included.
  • Gas and oil expenses or standard mileage rate of 19 cents per mile.
  • Storage within one month of moving

Non-Deductible Moving Expenses

Here are moving expenses you cannot claim on taxes:

  • Purchase price of new home
  • Vehicle tags
  • Driver’s license
  • Closing costs, fees, points, mortgage penalties etc.
  • Costs associated with breaking a lease or rental agreement
  • Loss on home sale
  • Home improvements made to help sell your old home
  • Real estate taxes
  • Carpet refittings
  • Househunting expenses
  • Return trips to old home
  • Security deposits

Contact Around the Clock Moving and Storage

We specialize in local and long distance moving for residential and commercial clients throughout the Dallas metro area, backed by 25 years of experience. Whether you are wanting to move out of state or simply around the corner, we can handle all of your moving needs! Contact Around the Clock Movers and Storage at 469-853-0045 or request an estimate.