How to Claim Moving Expenses as a Tax Deductible

Our customers ask our Newport News corporate movers about moving taxes constantly. Most corporate customers want to know, “Are moving expenses deductible?” Our team has compiled the answers to that question so that we can help you move and claim your move on your taxes.

If you’re a business owner planning to relocate or if your business is relocating you, there is plenty of valuable information regarding moving taxes write-offs, the dos and don’ts, what is tax-deductible after moving, etc.

List of Deductible Moving Expenses Infographic

How to Claim Taxes When Moving for Work

To answer the question, “Are moving expenses deductible?”, our Newport News local movers think you should know what a moving expense is. Moving expenses are an adjustment to income, not an itemized expense. You can only claim moving expenses on your taxes if you paid for moving personally. Any corporate moving expenses paid by your company will not count as tax-deductible expenses.

If the amount your company paid to relocate you exceeds the amount of the move, you cannot claim any moving expenses on your tax forms. Instead, you would claim the difference as taxable income.

Use IRS Form 3903 to claim the cost of moving expenses on your 1040 income form. The 3903 form acts as a moving expenses tax deduction calculator, with all the pertinent information contained within. Print out a form and keep it handy as a reference as you collect receipts and budget for the move.

Things Needed to Qualify for Tax-Deductible Moving Expenses

Moving Timeline

Your moving date must be close to the start of your new job, within 39 weeks, or just under 8 months. The only exception is if your family moves to be with you after the 39-week limit is met. Exceptions may be because family members are receiving medical treatment, or a child is finishing the school year.

Moving Distance

Your new job must be an additional 50 miles further away than your old job was from your old home. For example: if your old job was 20 miles from your old home, your new job should be at least 70 miles from your old home to be eligible for tax deductions from moving costs. The only exception is for military members who are moving permanently after a change in status (i.e. retirement).

Remember, the moving expenses you claim on your taxes should be reasonable. We have listed what would be considered reasonable moving expenses and what wouldn’t.

List of Deductible Moving Expenses

– Gas

– Depreciation from Mileage

– Storage (less than 30 Days)

– Rented moving supplies

– Tolls

– Parking fees

– Lodging

Moving Costs That Are Not Tax-Deductible

– Meals

– Fees associated with the lease for either new or old home

– Any expenses related to your new home

– Any costs of traveling to “house hunt” or “scout” before the move

– Any expenses that your employer reimburses you

Still wondering, “Are moving expenses deductible for your move?” Contact the corporate moving specialists at Newport News and we will assign you a moving coordinator to assist you throughout the entire process. Whether your move is tax-deductible or not, our team of Newport News movers is here to help get the job done! Contact us today for your free, no-obligation quote.