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Deductible Moving Expenses

Moving expenses can be deductible, under the following conditions:

  1. You must be moving because of your job, starting a new one, or working at a new location.
  2. You must move close to the day you start your new job, generally within 1 year of your start date.
  3. Your new job must be 50 miles farther than your commute from your old home to your old job.  If your commute from your old home to your old job was 12 miles, then your new job must be 62 miles from your old home.
  4. You must plan to stay at your new job full-time for at least 39 weeks the first year or if you are self-employed your must plan to work full-time for at least 78 weeks during the first two years.

If you qualify under these conditions, you may deduct:

  1. Travel Expenses- this includes transportation and lodging for your household while moving to the new location but not meals.  The mileage rate for moving expenses is 23.5 cents per mile in 2014.
  2. Household Goods and Utilities: You may deduct the cost of packing, crating, and shipping your things as well as temporary storage if necessary.  You are also allowed to deduct the cost of disconnecting or connecting utilities.

You are NOT allowed to deduct any part of the purchase price of you new home or the cost of entering or breaking a lease.

If you are reimbursed for any of these expenses from your new employer, you may have taxable income.  Consult your tax preparer for your unique situation or if you have any questions about the deductibility of your expenses.

Lastly, CONGRATULATIONS and GOOD LUCK on your new endeavor!

moving

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