On top of the stress of selling or buying a new home, packing, and settling down in a new area, moving can be expensive. However, if you’re moving for a new job, your moving costs could be tax deductible on both your federal and state taxes.

What are the requirements?

First, your move must be work-related. You can still be eligible for the moving expense deduction if you are self-employed.

Second, your new job location must be at least 50 miles further away from your former home than your previous job was from that home. So not all work-related moves will qualify you, even if not moving after a new job would significantly increase your commute.

Finally, you must work full time at your new job location for at least 39 weeks of the first year after your move. If you’re self-employed, you must meet that requirement in addition to working at least 78 weeks during the first 24 months at your new job location. (Certain limited exceptions apply.)

What expenses are deductible?

Generally, transportation and lodging expenses you and your household members incur while moving are deductible. You can also deduct the expenses of packing and transporting your property, and potentially the costs of storing and insuring anything during your move. You may also be able to deduct costs related to connecting or disconnecting utilities.

Be aware, however, that any meal costs during move-related travel aren’t deductible. Neither is any part of the price of your new home, or any expenses related to selling your old home. It’s also important to note that if your new employer reimburses you for any moving costs, you may have to include that reimbursement as income on your tax return if certain requirements aren't met.

If you think you may be eligible to deduct your moving costs, or have any questions about what you can deduct, contact Boulay and we’ll help you save money come tax time.