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Are Moving Expenses Tax Deductible?

November 19,2021

Moving always costs more than you think. Everything from purchasing moving supplies to hiring a local moving company, and maybe cleaning costs can strain your bank account. However, there are several ways you can save money on your move. One of those ways is to write off your moving expenses as a tax deduction.

If you’re planning on a move and looking for ways to reduce your moving expenses, you may be wondering if moving expenses are tax deductible.

Your moving expenses are tax deductible if you moved for work, but you must satisfy the following parameters.

  • The Time Test

You can deduct moving expenses if you work full time for at least 39 weeks during the first twelve months after your move. But it doesn't have to be the same employer for the entire 12 months. For people who are self-employed, they must work at their new locations for 78 weeks in the first 2 years to qualify for tax deduction on moving expenses. Based on the provisions of the 2017 Tax Cuts and Jobs Act, you can still claim the deduction if special circumstances force you to move to your new location long after your first day of work.  

  • The Distance Test

Your new work location must be at least 50 miles farther away from your previous home than your previous work location was from your previous home. For example, if your old home was 10 miles away from your previous place of employment, your new place of employment should be at least 60 miles away from your old home to qualify for a deduction on your moving expenses.

If you are a member of the armed forces on active duty, you don’t have to meet the distance and timing requirements to qualify for moving expenses tax deductions.

Moving Expenses May Be Tax Deductible If You Moved Before 2018

If you moved before the Tax Cuts and Jobs Act (TCJA) came into effect, you may qualify for moving expense deduction. But you must satisfy the distance and time requirements.

What Moving Expenses Are Tax Deductible?

If you qualify for moving expenses deduction, you need to know that only direct moving costs are deductible. These include the cost of packing your goods, storage costs, the cost of transporting your goods, insurance costs, and parking costs. Some of the costs that are not deductible include, meals you ate on your way to your new location, temporary lodging at your new location, remodeling your new home, and any side trips you took while traveling to your new location. Also, you cannot deduct moving expenses if your employer reimbursed them.

Planning A Move? Call National Movers for Assistance

When it's time to move, it's important to hire an experienced moving company to make the whole process easier and stress-free. At National Movers, we offer reliable local and long-distance moving services for homeowners and businesses. Whether you're moving to a new apartment or relocating your business, you can count on us for reliable moving services.