Moving This Summer? Here are 10 Helpful Tax Tips from the IRS

If you are moving to start a new job or even the same job at a new job location, here are 10 tax tips on expenses that may be deductible on your tax return.

  1. Expenses must be close to the time you start work:  moving expenses incurred within one year of the date you first report to work at a new job location.
  2. Distance Test:  your new job location is at least 50 miles farther from your former home than your previous job location was from your former home.
  3. Time Test:  you must work full time for at least 39 weeks during the first year at your new job location.
  4. Travel:  lodging expenses (not meals) for yourself and household members while moving from your former home to your new home; transportation expenses, including airfare, vehicle mileage, parking fees and tolls you pay, but only one trip per person.
  5. Household goods:  the cost of packing, crating and transporting your household goods and personal property, including the cost of shipping household pets.
  6. Utilities: the costs of connecting/disconnecting utilities.
  7. Nondeductible expenses:  any part of the purchase price of your new home, car tags, a driver’s license renewal, costs of buying or selling a home, expenses of entering into or breaking a lease, or security deposits and storage charges.
  8. Form: use Form 3903, Moving Expenses.
  9. Reimbursed expenses:  If your employer reimburses you for the costs of a move for which you took a deduction, the reimbursement may have to be included as income on your tax return.
  10. Update your address:  be sure to update your address with the IRS and the U.S. Postal Service.