How to Claim Moving Expenses as a Tax Deductible

All My Sons customers ask our Newport News corporate movers about moving taxes constantly. Most corporate customers want to know how to claim moving on taxes. So rather than send out customers to the IRS website, we created this post. This is a complete list of everything you need to know about tax write offs for moving. 

Moving to a new city for work? Well if you are the employee of the employer, there is plenty of valuable information regarding moving taxes write offs, the do’s and don’ts, what is tax deductible after moving, etc.

How to Claim Taxes When Moving for Work:

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.

Moving Tax Form:

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 at the link above and keep it handy as a reference as you collect receipts and budget for the move.

Two Things Needed to Qualify for Tax Deductible Moving Expenses

  1. 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.

  2. Moving Distance

You new job must be an additional 50 miles further away than your old job was from your old home. 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.

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

Need more information regarding moving employee or moving for work? Contact the corporate moving specialists at Newport News and we will assign you a moving coordinator to assist you through the entire process.