While moving is often a costly process, it is important to note that some of your moving expenses
may be tax deductible. This is especially true if you are moving as the result of a job transfer or
due to a change of jobs. Generally, if your move results in you relocating to a city more than 50 miles
from your current residence and you work in your new job for at least 39 weeks during the first year after
you move, you may be eligible for a tax deduction.
To be able to claim these tax deductions, you should keep accurate records of all the expenses incurred
as a result of your move. This will enable you to clearly show the exact cost of your move while identifying
how the money was spent. Below is a list of the most common tax deductible costs associated with moving.
- Shipping Charges (these are the costs incurred by using a moving service or truck rental)
- Storage Charges (any costs incurred while goods are in transit)
- Insurance Charges ( for goods while in transit)
- Personal Auto (mileage or actual costs, including gas and oil, parking, and tolls)
- Lodging (during course of the actual move)
- Child Care (for children that are cared for while you complete the move)
- Car Rental (in the event that you need extra transportation)
- Connecting or Disconnecting Utilities
- Loss of Property
- Cost of Property Lost or Stolen
- Employment Agency or Job Counseling Fees
- Telephone Calls to New or Prospective Employers
- Resume Preparation and Mailing
- Travel to Interviews
It is important to note that tax laws are always subject to change. You should always check with your
local IRS office or a qualified tax consultant for the most current guidelines involving tax deductible
moving expenses.
