Moving can be stressful. To ease a little of that stress, see if you qualify to deduct your moving expenses.
Certain expenses of moving to a new home because you started or changed job locations may be deductible. When you file your federal tax return, use Form 3903, “Moving Expenses”. This would be referring to your main home, not a seasonal or second home. You would be able to deduct the reasonable expenses of moving household goods and traveling from the old home to the new one.
So… who qualifies?
1. The move must be related closely to the start of work
Typically, you can consider moving expenses within one year of the date you start work at the new job location.
2. Test the Distance
Your new job must be at least 50 miles farther from your former home than it was to your previous job. Confusing? Yes. Let’s break it down –
Old job = 5 miles from your old house
New job = at least 55 miles from your old house
If you are farther than 50 miles from your house to your new job, you may qualify.
3. Test the Time
To qualify for tax deductions for your move, you must work full-time at your new job for at least 39 weeks in the first year. Or, if you are self-employed, you must work full-time at least 78 weeks during the first two years at the new job site.
Moving Tax Tips
If your employer is going to reimburse you for the cost of a move, the payment may need to be included as income. You would need to report the taxable amount on your tax return the year of the payment. Save any of these reimbursements for your records.
2. Not deductible when moving:
Any part of the purchase price of the new home, the cost of selling the old one, the cost of entering/breaking a lease, meals while traveling to the new home, car tags/driver’s license.
Keep good records of your expenses paid to move. Such as: receipts, bills, canceled checks, statements from your credit cards, any miles exerted.
4. Change Your Address:
Update the IRS and the U.S. Post office