What Moving Expenses are Tax Deductible?

If you move more than 50 miles from your original location because of your job or to start a new business, your moving expenses are deductible for tax purposes in most cases. In order to qualify to take the moving expense tax deduction, you must meet certain criteria.

Self-Employed

If you are self-employed, you must work full time for most of the first 12 months (a minimum of 39 weeks) at your new location, with at least 78 weeks worked over the first 24 months. Certain exclusions for death, disability, and armed service workers are allowed.

Deductible Expenses

Moving expenses are taken as a deduction, adjusting the amount of income you are required to pay taxes on. Allowed expenses include the transport and storage of your household goods, and travel expenses like gas and hotel. Meal expenses are not allowed to be deducted. If your employer is reimbursing you for a job transfer, you can only deduct the expenses that exceed the company reimbursement.

You can claim your moving expenses on Form 3903 and add the adjustment to your tax return on Form 1040, line 26. More information is available from the IRS in Publication 521 on Moving Expenses. Be sure to keep receipts for all of your expenses in case of audit.



Is a rental car tax deductible for moving expenses?



When trying to see if moving expenses are deductible, you should check IRS rules so that you can avoid any problems. One expense that many people wonder about is a rental car deduction. When you move, moving expenses are tax-deductible according to the IRS. Since it is a moving expense, renting a car is a qualified tax deduction. One thing to keep in mind is that you can deduct only one trip with your rental car. If you have to make more than one trip to pick something up, you can deduct only the first one on your taxes.

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