Did you move last year for a new job? If so, you may be able to deduct some of your moving expenses on your taxes this year. There are many detailed rules for who is able to deduct expenses, what expenses he/she can deduct, and what expenses are not allowed. You can find the complete details here, but a short summary is presented below. Please make sure to read the guide to check for your specific situation.
Who can deduct moving expenses?
The federal tax code allows for moving expense deductions if you are moving to start a new job or new business, and you are starting it reasonably close to your move date. The distance must be 50 miles in order to be deductible. If your employer provides reimbursement for your expenses, you cannot claim them on your taxes.
What moving expenses are tax deductible?
- Travel expenses
- Moving household goods and personal effects
What moving expenses are not allowed?
- Anyone who has moved knows that eating out frequently is unavoidable. However, you cannot deduct your meals.
- You may have lots of expenses related to selling your home or buying a new home, such as paying a realtor, making improvements, or house hunting trips. These expenses are not allowed.
- Your new home may require some improvements, such as new carpet or flooring, paint, etc. These are not deductible and neither are security deposits for your new place.
- Although the cost of transportation is deductible, if you do sightseeing on the way to your new location, this cost is not allowed.
There are different rules for Military and for if you are moving out of the country. Be sure to read the moving guide for information about your situation. Call Brown Box Moving today for help with packing and moving your household goods!