Yes! You may be able to deduct certain moving-related expenses if you are starting a new job or are being transferred to a new location. To qualify for the deduction, your new job location must meet certain distance requirements from your prior residence and you must begin work within a short period of your move.
The Qualified Moving Expense Deduction Tests
How do you know if your moving expenses are tax deductible? Well, the IRS will determine if your move is tax deductible based on two key factors:
- Is your new place of work at least 50 miles farther away from your former address than the old place of work? EX. If you used to drive 10 miles to work, your new job must be at least 60 miles from your former residence.
- Did your move occur within one year of your official start date?
If your answer to both of these questions is yes, then you are eligible for the Moving Supplies Tax deduction.
Special Circumstances for Moving Expenses
Moving-related expenses for Armed Force Members, Union Members, multiple job holders and those returning to full-time work may fall under special taxation circumstances. If you are a part of one the mentioned groups, consult a tax professional to determine whether or not you qualify.
Examples of Deductible Moving Supplies
- Fuel expenses for moving vehicles
- Storage expenses
- Hired movers
- Moving boxes
- Packing supplies
Examples of Non-Deductible Moving Supplies
- Driver’s License
- Real estate tax
- Security deposits