Did you recently have to move because of work? If so you may be able to deduct some of your costs. Even if you don’t itemize your deductions, you may still be able to deduct moving expenses if you meet the following two conditions:
- Your commute to your new job has increased by over 50 miles. So, the mileage between your old home and your new place of work is an additional 50 miles. For example, if you traveled 30 miles from your home to work, your new job location would have to be 80 miles away from your old home in order to qualify for an expense deduction.
- You need to spend at least 39 weeks at your new job for the first year after relocation. Self-employed individuals have to work for 39 weeks in the general location of the move for at least one year, and for 78 weeks in two years. If you were laid off or terminated for any reason other than misconduct, or disability forced you to retire, then the employment limitation does not apply.
Certain expenses are considered deductible. Listed on Form 3903, they are:
- Storage of personal and household goods throughout the move, as well as any expenses incurred for moving these items
- Costs for travel or lodging for your spouse and dependents while moving from one house to the other. Using your personal vehicle will allow you to deduct gas and oil expenses, or you can take the standard deduction of 23.5¢ per mile. Vince depreciation and insurance are eligible for a moving expense deduction.
You can’t deduct temporary living costs, or any expenses related to selling or purchasing a home. Reimbursement from your employer may be offered, in which case the amount will be listed as a memo entry on your Form W2. You won’t need to take a deduction as these expenses won’t be added to your taxable income.
You may be taxed if your employer offered money for expenses that weren’t deductible, because the reimbursement will be included in wages.