Get Every Home Tax Deduction When Moving

In order to qualify for the largest home tax deduction amount when moving, you need to meet several criteria. Remember to itemize your expenses carefully and back them up with receipts. Learn more below about how to get every deduction you are eligible for when moving.

3 Key Criteria

The first qualifier for moving cost deductions is that you must be moving to a new home for the sake of your job. It can be a transfer, or you can be starting a new job. This includes new graduates. Second, the new location must be at least 50 miles from your current address. Third, you must work full time, for at least 39 weeks in the 12 months after the move. If you are transferred again during that time period, you do not qualify for moving cost deductions.

Self-Employed People and Small Business Owners

As a self-employed person, or sole proprietor of a small business, you can move to find better business opportunities. The new location must be 50 or more miles from where you live. However, you must work full-time for both 39 weeks of the first 12 months and 78 weeks during the 2 years following the move.

Unemployed or Reentering the Workforce

You can also claim moving expenses if you relocate to a new area to find better job prospects. As with all moves, your new home must be 50 miles or more from where you lived before, and you need to work for 39 or more weeks in the 12 months after you relocate.

Home Tax Deductions

Obtain a copy of Form 3903 from the Internal Revenue Service to claim these costs. If your employer has agreed to pay some of these costs, fill in a detailed expense form at work to find out what they will cover for you. If your employer pays the costs up front, then your W-2 will include a line item for "Miscellaneous nontaxable item"and you will not need to submit any claims. These specific costs can be claimed for your move:

  • costs for packing and shipping your household goods
  • moving insurance costs for these items
  • rental storage for up to 30 days
  • disconnection charges for utilities at your original home
  • utility connection charges at your new home
  • travel costs for 1 trip to your new home
  • if you drive, you can claim 19 cents per mile for your driving costs
  • home purchase and sale expenses
  • costs of breaking a lease if you were renting
  • losses from resigning from fitness clubs and other memberships
  • replacement fees for driver's licenses and vehicle registration

When to Claim the Deductions

Wait until you have actually moved into your new home, so you can tally up all your allowable moving costs to get the deductions. The best way to keep track of all of your expenses is to keep your moving receipts in an envelope and refer back to them when you need. Keep detailed notes so that when the time comes to file your returns, the process is quick, easy and painless.

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