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Moving Expenses That Are Tax Deductions

Updated on March 21, 2017

Moving to a new town or state for a new job can be an expensive proposition. Those who move more than 50 miles from their previous home to take a new job will be able to take advantage of a fairly helpful tax benefit. Those who've moved can deduct reasonable moving costs from their adjustable gross income, and this will cut the amount of tax that they owe. To qualify for the deduction, the new job must start within one month of the move, and the expenses must not have been reimbursed by the employer. Here are some of the expenses that can be deducted as per IRS Publication 521.

Deducting moving expenses is a great way to save on tax bills. Reducing tax liability can go a long way to improving your financial situation.
Deducting moving expenses is a great way to save on tax bills. Reducing tax liability can go a long way to improving your financial situation. | Source

Mileage

You can legally deduct the expense for mileage from your old residence to your new one. This distance should be the most direct reasonable route and cannot include any sightseeing excursions. You can either deduct the standard deduction of 24 cents per mile traveled or your actual gasoline expenses should you keep track of them.


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Moving Household Goods

You can legally deduct the cost of moving or shipping household goods that include furniture and personal effects. This cost can include anything related to shipping, packing, and crating these goods. Shipping a car to the new location is also deductible.


Lodging

Some cross-country moves could take nearly a week to make. It is impossible to drive this straight through. Therefore, the IRS allows taxpayers to deduct any lodging expenses incurred on the trip. This can also include the day you arrive in your new location should you not move into your new home immediately.


Storing Personal Property

Sometimes it is not possible to move into a new home before starting a new job. In these instances, those who need to store their personal property in a unit at Self Storage in Zionsville or another location can deduct the cost of storage for a period of 30 days between the date on which they were moved from the old home to their new housing arrangements.

Airfare or Train Transportation

Some people will have all of their personal effects shipped to their new location. These citizens will sometimes need to purchase a plane or train ticket to get to their new home. The deduction is limited to one trip per person. For example, a husband might drive to the new home. The wife might fly. They cannot claim two tickets if only one flew. These expenses are deductible from adjustable gross income according to Publication 521.

Meals Are Not Deductible

You cannot deduct meals that are purchased when traveling on a moving trip. You would be eating food regardless of whether you were moving or staying put. So, while you can deduct most of the expenses related to a move, meals are not among them.

Conclusion

Deducting moving expenses can be a great way to help with some of the major expense that is associated with a new job. Every little bit helps. It is important to remember to check with the appropriate IRS publication to verify the expenses that are allowable. For example, meals are not. Taking care to make sure that you stay within the letter of the law will help avoid trouble with the IRS in the event of an audit.

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