Are Moving Expenses tax deductible?

Job-related moves can cost a lot, but some moving expenses can be tax deductible - they are deducted when figuring adjusted gross income on your federal income tax return. Moving household goods is tax deductible, as is travel and lodging on the way to your new home.

A tax deduction may be available for the unreimbursed moving expenses of changing residences if the move is made in conjunction with changing the location of your job.

To deduct the moving expenses on your tax return you must meet the following tax tests:

	The 50 mile distance test; and
	The time test for remaining in your new location.

The new job site for which you want to deduct the moving expenses to must be at least 50 miles farther from your former home than was your previous job site. You must also either work full-time as an employee in the general location of your new home for at least 39 of the 52 weeks following the move for which you want to deduct moving expenses on your tax return; or work full-time as a self employed individual for both 39 of the 52 weeks and 78 of the 104 weeks immediately following the move for which you want to deduct moving expenses on your tax return. This tax requirement can be met either with one job or through a series of full-time positions.

If the above two tax tests are met you may deduct the following moving expenses on your tax return:

	Travel costs of yourself and members of your household en route from your old location to your new location; and
	The actual cost of moving your personal effects and household goods.

Actual car expenses such as gas and oil are tax deductible if accurate records are kept, or you can take a 18 cents a mile tax deduction instead. Parking fees and tolls are tax deductible, but general car repairs, maintenance, insurance or depreciation of your car are not tax deductible.

Other moving expenses that cannot be deducted for income tax purposes include pre-move house hunting expenses, temporary living expenses, meals, expenses of buying or selling a home, home improvements to help sell a home, loss on a home sale, real estate taxes, car tags, and driver's license and storage charges except those paid in-transit and for foreign moves.

Reimbursed moving expenses are excluded from taxable income (unless you previously deducted them on your income tax return) and unreimbursed moving expenses are tax deductions in computing your AGI rather than your itemized tax deductions.

Report your tax deductible moving expenses on IRS Form 3903. Also make sure that you notify the IRS of your change of address on IRS Form 8822.

Related tax information about Moving Expenses

Tax Directory Topics:
Miscellaneous Itemized Tax Deductions
Itemized Tax Deductions Directory

IRS publications about Moving Expenses:
For additional information, refer to Tax Topic 455, Moving Expenses. Also see IRS Publication 17,

. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.

Customer Support

Still have IRS or tax Questions?
To view the Master Index of all tax and IRS topics click here.

Ask Julian Block your IRS and tax questions!

If you can't find the answer to your IRS or tax question in our web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine.

To call Julian for a tax consultation click here.

Prepare your IRS tax return and State tax return online - If you'd like to e-file and/or print your IRS tax return or State tax return online click here.