Are Moving Expenses tax deductible?

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 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:

Actual car expenses such as gas and oil are tax deductible if accurate records are kept, or you can take a 24 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.