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Moving Tax Deductibles

As of 2018, the IRS Form 3903 is used for a moving expense deduction when you are relocating for work related reasons.

Note that there are a few requirements to qualify for this tax deductible.

  • The total amount of money reflected should show the amount of money you spent
  • If your employer reimburses you for any amount of money it cannot be included in the IRS Form 3903.
  • You must stay with this employer for a minimum of 39 weeks
  • You are expected to be working within a year
  • Your new home must be at least 50 miles away from the old home.
  • Other acceptable expenses included in the form may be gas, tools, and hotel costs (for long-distance moves)

Moving Tax Deductibles Exceptions

There are certain exceptions to these rules. For example, if you start your new job before relocating to a new area due to a child finishing out a school semester or a spouse receiving medical care, you can still qualify for moving day tax deductibles.

In addition, members of the United States Military can claim moving deductibles regardless of the distance of their previous post. Moreover, moving expenses are still eligible for deduction if the active member is moving for retirement purposes.

In terms of qualifying expenses, all tax-deductible expenses must be necessary for the successful relocation of your home. Long term moves may have more leeway in terms of deductions. Generally, you can deduct gas or the mileage on your vehicle, rental trucks, short-term storage, and boxes.

Here are a couple of expenses that do not qualify as moving tax deductibles:

  • Costs that come with purchasing or selling a home or rental property
  • The cost of registering an automobile in a new state
  • Storage charges that incur after the arrival unless in the case of a foreign move
  • The cost of a security deposit or lease expenses

It’s important to note that tax law is rapidly involving, so it’s important to consult with your employer and accountant about your specific year’s eligible moving deductibles and expenses. Different states have different tax laws as well, so your potential deduction may depend heavily on where you’re moving or relocating from.

Please feel free to reach out to Moishe’s moving with any other questions, we’d love to hear from you and guide you towards moving deductible savings.