Tag Archives: moving expenses

Can Moving Expenses Be A Tax Deduction?

According to the American Moving and Storage Association, many situations in which you have incurred moving expenses can count as a tax deduction from your federal income taxes. However, in order to file these moving expenses as tax deductible, you must meet several of the requirements. Here are the parameters for meeting the requirement for a reduction off your federal taxes.

To qualify for a deduction for “reasonable” moving expenses if you moved due to a change in your job or business location, or because you started a new job or business, you must first satisfy two tests: (1) Under the distance test, your new job must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job must be at least 50 miles from your old home. Or (2) in order to meet the requirements of the timing test, you must be an employee working full-time for at least 39 weeks during the first 12 months right after you arrive in the general area of your new job.

In addition, if you are a member of the armed forces and your move was due to a permanent change of station, you do not have to satisfy the distance or timing tests previously mentioned. “Reasonable expenses” according to the IRS, include the cost of packing and transporting your goods and effects, the cost of storage and insurance on these items and the cost of connecting and disconnecting utilities while moving household goods and personal effects. Meals are not deductible as an expense. Also pre-move house-hunting expenses and entering into or breaking a lease are not deductible. The standard mileage rate for moving expenses for 2010 is 16.5 cents a mile, plus parking fees and tolls.