Did you know that when you move, you can deduct your expenses from your taxes? To qualify for the moving expense deduction, you must be moving to a new principal residence to work as an employee or as a self-employed individual at a new principal place of work. Also, you must meet both the distance and the time tests, unless you are a member of the armed forces and your move was due to a permanent change of station.
To meet the requirements of the distance test, your new job location must be at least 50 miles farther from your former residence than your old job location. The time test requires that as an employee, you must work full–time for at least 39 weeks during the 12 months right after you move. If you are self–employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you move. There are exceptions to the time test in case of death, disability and involuntary separation.
If you meet all of these qualifications, some of the expenses that you can deduct include (as listed by Atlas):
- The cost of transporting your property from your old residence to you new residence, including the actual cost of transportation or hauling from your old residence to your new one; the cost of packing, crating and unpacking; and storage in transit.
- The cost of shipping your automobile(s).
- The cost of transporting your household pets.
- The cost associated with connecting and disconnecting utilities because you are moving.
- The cost of moving your personal belongings from a place other than your old residence (such as a summer home or relative's home) may be deducted, to the extent that it does not exceed what it would have cost to move them from your old residence.
- The family trip to the new residence is considered a direct moving expense and is deductible. This includes lodging, but not meals.
To find out more details about deducting moving expenses, you can go to the IRS Web site.
