If you are moving to start your first job, your moving expenses may be tax-deductible, depending on how far you move. If you meet the criteria for the “distance test” you can deduct the cost of hiring movers and traveling to a new home: if the new job is at least 50 miles away from your old home, you can deduct moving expenses. These include: the cost of hiring movers (including costs of packing as well as transporting your possessions) or the cost of renting a moving van, if you do it yourself. You can also deduct the cost of travel from your old home to your new home (including lodging, but not meals). If you drive, you can deduct 17 cents per mile in 2017, as well as parking and tolls. Hold onto all your receipts and keep a mileage log. If you need to store your possessions, you can deduct the cost for up to 30-days, between moving and delivery dates.
If your new employer reimburses all or part of your moving costs, as many employers do, those costs are not tax-deductible.
Even after your first job, moving expenses can be deducted if going to a new job is 50 miles farther from your old home than your old job was. So if your old job was 6 miles from home, your new job must be at least 56 miles from your former home. And you don’t need to itemize to take that deduction. Just submit IRS Form 3093 next spring, when you file your taxes. IRS Publication 521 has more information and a complete list of eligible expenses.
Here at TaxProblemSolver.com, we’re available to help you make the most of your tax breaks, when you or your children are first starting out. If you have any questions, email me at firstname.lastname@example.org and I, or one of my Tax Problem Solver Team, will help you with whatever’s going on. Let’s make taxes work for us rather than the other way around! And have a great move!