The Bekins Blog
Can Moving Expenses Be A Tax Deduction?
Taxes and moving have a lot in common: they can both be stressful, costly and confusing. However, they don’t have to be any of those things! The moving experts at Bekins are here to help. If you’re working on your moving budget, you’re probably looking for ways to save as much as you can. Writing your move off as a tax deduction is one way to do that.
According to the American Trucking Association Moving & Storage Conference, here are several situations where moving expenses can count as a tax deduction from your federal income taxes. However, in order for
these moving expenses to be tax deductible, you must meet a few requirements. Here are the parameters for meeting the requirements for a tax-deductible move:
Is my move tax deductible?
Your move is tax deductible if:
1. You moved for work
If you moved due to a change in your job or business location or because you started a new job or business, you may be eligible for a tax-deductible move. However, you must first satisfy two parameters: the time test and the distance test.
Moving as a Tax Deduction: The Time Test
To pass the time 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.
However, there is an exception: if you start your job months before your family moves because of special circumstances, you can deduct your moving expenses even if your move happens long after your first day of work.
Moving as a Tax Deduction: 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.
2. You’re a member of the armed forces
If you are a member of the armed forces and your move is due to a permanent change of station, you don’t have to satisfy the distance or timing tests mentioned above. However, only “reasonable expenses” can be counted as a tax deduction according to the IRS; these items include:
- The cost of packing and transporting your goods
- The cost of storage and insurance on your items
- The cost of connecting and disconnecting utilities while moving household goods
The standard mileage rate for moving expenses in 2021 is 16 cents per mile (plus parking fees and tolls). Meals, for example, are not deductible as an expense. Neither are pre-move house-hunting expenses or entering into or breaking a lease.
Even if your move can’t be written off as a tax deduction, you can still find ways to save money during your relocation. At Bekins Van Lines, we have moving discount options available including:
- NARFE Member Discount. Members of NARFE have special moving discount opportunities available for interstate moves.
- Lutheran Church Discount. Bekins offers a Lutheran Church Missouri Synod Discount for members, pastors, teachers and employees.
Do you qualify for one of these discounts? Learn more about how to apply for Bekins special moving discounts.
Once you’ve figured out your finances and you’re ready to get started with your move, get in touch with Bekins Van Lines or get a ballpark estimate to get a better idea of your moving budget. We look forward to creating your personalized moving plan for an easy relocation experience.