Moving Boxes Moving Supplies

Is Moving Tax Deductable?
Back to Articles

Moving is a very expensive process and many consumers do not realize that many aspects of the move are tax deductible if you qualify. If the purpose of relocation is for employment, military reasons or if you are self employed and relocating. Often there are many aspects that become deductible, greatly decreasing the cost of moving!

The expenses that are tax deductible in these situations are the cost of relocating to the new residence which include; hauling, and transportation costs, the cost of storing, packing, and unpacking, the cost of shipping your vehicle, the cost of moving your pets, and the cost of travelling to your new residence. Keep in mind that this includes lodging but not meals. Costs of packing include packing materials, moving boxes and hiring a moving company to assist with the move. Keep all receipts and estimates given to you by the moving company.

All tax payers are eligible for these deductions, as long as you fall into the following categories; if you are moving to a new residence for the sole purpose of employment. This includes employment with a company and self employment, moving to a new job that is at least fifty miles away from your residence, than your old job, moving to a foreign country for military service, a full time employee who will work within the new location for 39 weeks out of the year, or lastly, a self employed individual who will work in the new area for 78 weeks during the first two years, 39 of these weeks must be in the first year.

Be sure to keep all applicable receipts and talk to your accountant when it comes time to file your tax return. This should not be overlooked; you may drastically reduce your tax bill with the deductions of the cost from your move!