I moved recently can I get a tax deduction for moving expenses?
To write off your moving costs, you must pass three requirements:
Your move must be job related.
Timing of the move.
It does not matter if you are moving for the first the job you have had, your current job or a new job.
Timing has two requirements:
Part 1: Moving expenses must be incurred within one year of starting at a new workplace to be deductible.
Part 2: You must work full time at the new location for at least 39 weeks during your first 12 months there. The weeks worked don’t have to be consecutive or with the same employer.
Note* Expenses are deductible even if you have not yet met the timing requirement by the time your tax return is due.
Self-employed workers moving to a new location must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months. The weeks worked do not have to be consecutive.
The location of your new job must be at least 50 miles further away from your previous residence than your last place of employment was. In other words if you lived 10 miles from your old job, your new job must be at least 60 miles from your old home before you are able deduct moving costs.
The IRS requirements figure the distance using the shortest of commonly traveled routes. Be careful when choosing your route.
If you meet the timing and distance requirements, be sure you save those moving receipts!
IRS approved deductions for this are many and include: your costs to move household goods, personal property, limited storage and associated insurance fees. In addition utility connection/disconnection charges may be eligible too.
Lodging and travel expenses near your new and former homes also are deductible..again these are limited so be sure you know the rules, as well as shipping costs for your automobile. If you drove your vehicle yourself, the mileage rate for using your car to move in 2016 was 19 cents per mile. Be aware that in 2017, the rate will drop to 17 cents a mile.
In addition you can also write off travel arrangements you make moving your household pets to your new home, check the rules.
Be aware that if your new employer reimburses you for some or all of your moving costs, the IRS will not allow you to claim same deductions as moving expenses paid by your boss are not deductible.
If you are married and file jointly, only one spouse needs to meet the time and distance requirements. But, the weeks your spouse worked with the weeks you worked to satisfy the time-employed requirement cannot be combined.
If you want to deduct moving expenses but do not pass the timing requirement all is not lost, you then must file an amended tax return or include the moving expenses in your income the next year. Still have questions on allowable tax deductions regarding moving expenses? Simply refer to IRS Publication 521, Moving Expenses.