MOVING EXPENSES Taxpayers may deduct qualified moving expenses that are not reimbursed by an employer, or amounts in excess of any employer reimbursement.  The deduction is an “above the line” deduction, so the expenses may be claimed as an offset against income even if a taxpayer does not itemize deductions.  But, there are specific distance and time requirements below must be met to qualify for the deduction.

THE TWO SPECIFIC REQUIREMENTS THAT MUST BE MET

1. DISTANCE TEST:  The distance between a taxpayer’s new main job location and former home must be at least 50 miles farther than the distance between the old job location and former house.  First time employees or persons return to the work force meet the test if the new work place is at least 50 miles from the former home.  The distance test considers only the former home, and does not take into account the location of the new home.

2. TIME TEST:  A taxpayer MUST work as a full-time employee for at least 39 weeks during the 12 month period following arrival.  For married taxpayers, only one spouse needs to satisfy the full-time work test.  Self-employer taxpayers must work at least 39 during the first 12 months, AND a total of at least 78 weeks during the first 24 months after arrival at the new job location.  A person can count any full-time work as an employee or as a self-employed person.  The taxpayer needs to begin employment or self-employment with one year of the move to qualify.

TAX DEDUCTIBLE COSTS AND EXPENSES

1. COSTS OF MOVING HOUSEHOLD GOODS AND PERSONAL EFFECTS:  Deductible costs include the costs of moving household goods and personal effects from the old residence to the new place of residence, including amounts paid to a commercial moving company and/or the cost of a self-move such as a van rental, in-transit storage expenses, and packing materials.  The costs of storing and insuring household and personal goods only for a period of 30 consecutive days.

2. TRAVEL EXPENSES:  Deductible travel costs to the new residence include the following:

A. Travel expenses for one trip for the taxpayer and for each member of the household, which includes lodging in transit, but NOT meals.  This includes lodging during the move and could include airfare, parking fees and tolls.

B. If a personal vehicle is used to travel to the new home, you can deduct either the actual costs paid for gas and oil during the move or mileage at IRS prescribed mileage rate for each mile traveled. 

NONDEDUCTIBLE EXPENSES

The following expenses CANNOT be deducted as moving expenses:

1. Pre-move househunting expenses, although job-hunting expenses may be deductible.
2. Temporary living expenses, except for a hotel stay for one day prior to a move and the day of arrival.
3. Any meal expenses.
4. Expenses of buying or selling a home, mortgage penalties, lease cancellation costs, lease deposits.
5. Expenses of side trips, such as sightseeing trips, while moving.