Summer is a popular time to move for various reasons. But unfortunately, moving can be expensive. The good news is that you may be eligible for a federal tax deduction for your moving costs.
Pass the Tests to Qualify
The first requirement is that the move be work-related. You don’t have to be an employee either. The self-employed can also be eligible for the moving expense deduction.

The second is a distance test. The new job location must be at least 50 miles farther from your former home than your former main job location was from that home. A work-related move from the city to the suburb or from a town to a neighboring town probably won’t qualify, even if not moving would increase your commute significantly.

Finally, there’s a time test. You must work full time at the new job location for at least 39 weeks during the first year. If you’re self-employed, you must meet that test plus work full time for at least 78 weeks during the first 24 months at the new job location. Certain limited exceptions apply.

What Moving Expenses are Deductible?
Usually, you can deduct transportation and lodging expenses for yourself and household members while moving.

In addition, you can likely deduct the cost of packing and transporting your household goods and other personal property. And you may be able to deduct the expense of storing and insuring these items while in transit. Costs related to connecting or disconnecting utilities are usually deductible, too.

But don’t expect to write off everything. Meal costs during move-related travel aren’t deductible. Nor is any part of the purchase price of a new home or expenses incurred selling your old one. And, if your employer later reimburses you for any of the moving costs you’ve deducted, you may have to include the reimbursement as income on your tax return.

Contact your advisor with questions about whether your moving expenses are deductible and what you can deduct before your next move.