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Moving Expenses Tax Deduction Guideline

Below is a moving expenses tax deduction guideline. Moving expenses is another popular tax deduction item that the IRS allows. Deducting moving expenses can be done on line 26 on the IRS tax form 1040 as an income adjustment item. Moving expenses are reported on the IRS tax form 3903.

IRS rules for deducting moving expenses

Note that not all moving expenses are tax deductible. Most moving expenses are not tax deductible. In order to qualify for moving expenses tax deduction, the new job location must be at least 50 miles further from the former home than the old job was from the former home.

Moving Expenses Tax Deduction Guideline

In another word, the distance B must be at least A + 50 miles. This is the qualifying test for moving expenses to be deductible whether the taxpayer moves or not. The commuting distance would have to increase by 50 miles or more for the taxpayer to claim moving expenses tax deductions.

Does the location of the new home matter when deducting moving expenses?

No. The location of the new home does not factor into the moving expenses calculation. The distance from the old home to the new work place and the old home to the old workplace are used in determining if the moving expenses are valid tax deductions.

Other eligibility requirements for deducting moving expenses

The IRS also has rules that to deduct moving expenses, the taxpayer must work full time as an employee for at least 39 weeks in the first 12 months after arriving in the new area. Longer working time applies to self employed taxpayer.

What are deductible moving expenses?

Deductible moving expenses include the cost of:

  • moving household goods
  • travel and lodging
Are costs of meals tax deductible as moving expenses?

Meals are not tax deductible because taxpayers have to eat regardless of where they are.

What are standard mileage rate for moving expenses?

The standard mileage rate for moving expenses is 20 cents a mile.