You may be able to deduct some expenses incurred from a work-related move. Whether or not you itemize deductions, you may qualify to deduct some of these expenses if you meet the following two conditions:
- Your new job has increased your commute from your old home by over 50 miles. This means that there has been a 50 mile addition between your old home and the place of your work. So if you previously traveled 20 miles to get to work, in order to claim moving expenses, your new job will have to be 70 miles away from your previous home.
- You are required to spend 39 weeks at your new job in the year after you move. For self-employed individuals, you have to work for the 39 weeks in the general area of your move for one year, and 78 weeks in two years. This employment threshold doesn’t apply if you have been laid off or terminated for reasons beside misconduct, or if you retire due to disability.
You can find deductible expenses on Form 3903. They include:
- Transportation or storage of personal and household items during the move
- Travel or lodging costs, excluding meals, incurred during the move for your spouse and dependents, from one house to another. If you use your own vehicle to move, you can deduct gas and oil expenses, or take a deduction of 23.5 cents per mile. You can’t deduct maintenance, depreciation, or insurance for your vehicle.
You aren’t able to deduct expenses from real estate searches, temporary living costs, or any related to selling, renting, or purchasing your home.
If your employer offers reimbursement of your moving expenses that are qualified for deductions, you will notice the amount of those funds listed as a memo entry on your W-2. That total will not be added to your taxable wages, so no deduction is needed.
Although, if your employer offered money for other expenses that are not deductible, you will be taxed on that amount, as it is included in your wages.