When you move for the sake of a job, some of the expenses relating to your move may be deductible on your tax return. Such expenses can include the costs of transportation and lodging incurred during your move, the costs of packing, shipping, storing, or insuring your property, and the cost of disconnecting or connecting utilities. You cannot deduct the cost of meals, the cost of your new home, costs associated with selling your home, or the cost of breaking or entering into a lease.
To find out if you are eligible to deduct your moving expenses, consider the following requirements:
- The move must relate to the start of work. You can generally consider the moving expenses for your return if the move is made within one year of starting a job at a new location.
- The move must meet the distance requirements. The new location of your job must be a minimum of fifty miles farther away from your old home than your previous job location.
- Your job must meet the time requirements. The job requiring you to move must be a full-time position, and you must work in this job for at least thirty-nine weeks the first year following your move. Additionally, you must work full-time for a minimum of seventy-eight weeks throughout the first two years at the new job location. These rules also apply if you are self-employed. If your tax return is due prior to you meeting these requirements, but you expect to meet them later on, you can still claim the deduction for this tax year.
Any reimbursement that you receive from your employer regarding your moving expenses may need to be reported as income.
For further details, see Publication 521. Should you require any additional help with your taxes or finances, please contact Seattle CPA Alisa Na during normal business hours.