Summertime is a popular time for people with children to move since school
is out. Moving can be expensive, but the IRS offers 10 tax tips on deducting
some of those expenses if your move is related to starting a new job or a new
- Move must be closely
related to start of work Generally, you can consider moving expenses incurred
within one year from the date you first reported to a new location, as
closely related in time to the start of work.
- Distance Test Your move meets the
distance test if your new main job location is at least 50 miles farther
from your former home than your previous job location was.
- Time Test You must work full time
for at least 39 weeks during the first 12 months after you arrive in the
general area of your new job location, or at least 78 weeks during the
first 24 months if you are self-employed. If your income tax return is due
before you’ve satisfied this requirement, you can still deduct your
allowable moving expenses if you expect to meet the time test in the
- Travel You can deduct lodging
expenses for yourself and household members while moving from your former
home to your new home. You can also deduct transportation expenses,
including airfare, vehicle mileage, parking fees and tolls you pay to
move, but you can only deduct one trip per person.
- Household goods You can deduct the cost
of packing, crating and transporting your household goods and personal
property. You may be able to include the cost of storing and insuring
these items while in transit.
- Utilities You can deduct the
costs of connecting or disconnecting utilities.
- Nondeductible expenses You cannot deduct as
moving expenses: any part of the purchase price of your new home, car
tags, drivers license, costs of buying or selling a home, expenses of
entering into or breaking a lease, security deposits and storage charges
except those incurred in transit.
- Form You can deduct only
those expenses that are reasonable for the circumstances of your move. To
figure the amount of your moving expense deduction use Form 3903, Moving
- Reimbursed expenses If your employer
reimburses you for the cost of the move, the reimbursement may have to be
included on your income tax return.
- Update your address When you move, be sure
to update your address with the IRS and the U.S. Postal Service to ensure
you receive refunds or correspondence from the IRS. Use Form 8822, Change
of Address, to notify the IRS.