Tax Deductions from Moving

Moving and Tax Deductions

Tax deductions from movingTax deductions from moving can be included in your 2016 taxes! These helpful tips will help you decide if you meet the criteria.  Visit IRS.gov for more details, and always consult your tax preparer.

In order to take tax deductions from moving, you typically must meet these 3 criteria:

  1. Moving coincides with starting work
  2. Exceeds 50 mile distance
  3. Meets employment time requirements

The first rule specifies that your move must be related to work.  In order to get a tax deduction for moving, you must move near to your new job and near to your new start date.  Typically, you can claim moving expenses within a 1 year time period of your start date.

Rule 2 requires a 50 mile distance.  This means that your new job must be at least 50 miles farther vs. your old home and the distance to your old job.  For an example, if your old commute was 10 miles one way, your new commute must be 60 miles one way to your old home.  If you did not have a job previously, your new job must be 50+ miles from your old home to qualify.

Rule 3 outlines employment terms.  As a full time employee, you must work 39 or more weeks in your new location. Self employment requires 39 weeks in the first year, or a total of 78+ weeks during the first 24 months.

Your potential moving deductions can include moving service fees, storage, travel fees and more.  Each year, we recommend that our customers contact their tax preparer to discuss moving expenses and see if your move qualifies! These rules may change, and can be different for military members and other special circumstances.  If you moved in 2016, let your tax professional know ahead of time!

This helpful information is on IRS.gov and can be found here.  Our local and long distance customers can call us anytime for a re-print of your moving invoice and plans in 2016!

Tax Deductions from Moving – The Rules are Subject to Change

When we spoke to Jeff Campbell of Jeffrey Campbell CPA, he mentions that with the IRS there are always exceptions and sometimes the rules may be changed or updated. For example, the time test does not apply if the job ends because of disability, the employer transfers the employee, the employee was laid off for other than willful misconduct, the taxpayer is a member of the Armed Forces, etc.

View this helpful handout on moving expenses and tax deductions.  If you think may qualify for moving expense deductions, download today!