The Wheaton Blog
Can I Deduct Moving Expenses for a Job?
If you’re moving for work, there’s a chance that your relocation expenses are tax deductible. The experts at Wheaton have years of experience moving employees and employers and understand the time, money and effort it takes to relocate. So why not lighten the moving load and see if you can get your expenses deducted from your taxes?
There are several situations where moving expenses count as a tax deduction—moving for work is one of them. However, not every corporate relocation meets all the criteria needed to deduct your move. Keep reading to find out if your work move is tax deductible:
A tax deduction is a deduction that lowers your taxable income; moving expenses are an adjustment to income, not an itemized deduction. A moving tax deduction commonly covers “reasonable” expenses you acquire as you relocate. Transporting your belongings to your new home, renting a storage unit if you are unable to move into your new home immediately, cost of travel, for example, are all common expenses that you can deduct (if eligible). There are a few circumstances where you can deduct moving expenses from your taxes, and we’ll cover them below:
When you relocate for a job, your expenses may be eligible for a tax deduction, although, you do need to first satisfy a few parameters:
Unfortunately, costs from a move within the same town do not qualify for a tax deduction; your move needs to meet distance requirements: the distance of your new job and your old home must be at least 50 miles farther than your old employer is from your old home.
There’s no way around this rule. The IRS will decide whether you meet the “distance test” by requiring you to choose the “shortest commutable routes between two locations.”
Along with the “distance test” you must also meet the following time requirements for a tax-deductible move: you must work full-time for a minimum of 39 weeks. This needs to happen during the initial 12-month period that begins on the day you get to your new location.
However, you can still satisfy this time requirement even if the 39 weeks are nonconsecutive and when it’s for multiple employers. Additionally, what “counts” as full-time is not up to the IRS—that is determined by your industry or business standards.
What is Deductible:
Like we said above, you can usually deduct basic expenses of moving yourself, your family and your belongings, including:
- Moving company expenses
- Moving trucks and pods
- Transportation and travel expenses
- Packing supplies
- Moving valuation
What Isn’t Deductible:
- Meals and food
- Transportation or travel for house hunting (not moving)
- Lodging at your old location for more than a day
Make Your Move Work for You: Relocate for Your Job with Wheaton World Wide Moving!
If you’re getting ready to move for work, it’s time to get in touch with Wheaton World Wide! We have years of experience working with employees, employers, HR professionals and more so you can feel confident we’ll get your move done right. We’ll make your relocation as simple as possible so you can focus on getting back to work and enjoying your new home.