Moving Deductions


Got moving expenses? You may be able to get a tax deduction for them.Fragile-Moving-Box-300x168

The first step is to clear out all your stuff from your attic or basement. If some of that stuff is in good condition, consider donating it and getting a tax deduction for it rather than hauling it with you. It is all about new beginnings. Speaking of new beginnings, perhaps you landed that dream job. If you are moving for a new job, you may be able to deduct your moving expenses.

Here is what you ought to know about moving deductions:

    • The move needs to be job-related

This means you are moving for a new job, or you are moving because of business relocation

    • The timing of the move needs to be correlated with the new job

The time of your move must be closely related to the time of starting your new job or new location of your business. “Closely related,” as defined by the IRS, generally means within a year of starting your new job or relocating due to business. If you are unemployed, it is not necessary that you arrange work before heading to a new locale.

    • Unlike some other tax provisions, you actually need to work for this one

If you are a current employee, directly after your move, you must work at least full-time, 39 weeks in the first 12 months. If you are self-employed or unemployed, the above applies, plus, you must work at least 78 weeks in the first 24 months.

    • You need to satisfy the 50 mile rule

Your new workplace must be at least 50 miles farther than what your past job was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.


So what are allowable deductions?

    • Tax deductions for travel

Expenses that you can claim are gas, oil, tolls, and parking fees. For mileage, you can either keep tabs on expenses, or you can take the standard deduction of 23.5 cents per mile.

    • Packing and moving belongings

These types of expenses are deductible. And also is the cost of shipping your pets or cars.

    • Storage cost

Any storage costs associated with your move, starting on the day you leave your former home and for the next 30 days, are tax deductible.

Welcome to Massachusetts!

If you came to Massachusetts for a new job, the tax deduction carries over to your Mass tax return. That is the consolation prize for having to file two state part-year resident tax returns. If you are leaving Massachusetts, well, you are out of luck on Mass, unless you are moving to one of these other fine welcoming states that allow a moving expense deduction.

What has been the furthest distance you were required to move either as a result of a job change? Leave your comment below or visit our Facebook or Google+ pages.

For more information, call Alex Franch at 781.789.7200. WorthTax has locations in Norwell, Dedham, and Weymouth, Massachussetts.
Alex Franch

Mr. Franch is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Mr. Franch is an Enrolled Agent and has eight years of tax preparation experience. He has been serving individuals, families, and businesses for several years with tax and financial planning strategies and is a junior partner with the firm. Mr. Franch is licensed by the Financial Industry Regulatory Authority (FINRA) with a Series 6, 63, 65, and 7, and by the Commonwealth of Massachusetts Division of Insurance.