Are Your Moving Expenses Tax Deductible?

New year, new… tax returns to file. We’ll go out on a limb and say that no one likes tax season. Unless you’re that guy with the bow tie from the H&R Block commercials. Filing your own taxes can be confusing, and if you’re factoring in a recent move, the process can be overwhelming. We’re not here to scare you though. We bear good news for relocatees. If you have relocated for a job during the 2016 tax year, your moving expenses may be eligible for Federal tax deductions, according to the Internal Revenue Service.

It’s called Federal Tax Form 3903, and it’s not for everyone. For instance, if your moving expenses were reimbursed by your employer, your expenses wouldn’t qualify. Your expenses do qualify if:

Your moving day and first day of work are closely related. You can claim expenses acquired over the course of a year from your initial start date at your new job. Your new location must be close to your new place of employment. Closer, at least, than your previous residence. Military moves are an exception.

You pass the distance test. The distance between your old home and your new workplace must be 50 miles greater than the distance between your old home and your old workplace. Yes, this sounds complicated. Let’s say you commuted 5 miles to work every day from your old home to your old job. In order to qualify, your old home must be at least a 55 mile commute to your new job. Still confused? The IRS makes it simpler with the distance test worksheet, found on page three of Form 3903. If you didn’t report to a physical workplace, you qualify so long as your new job is at least 50 miles away from your old home.

You pass the time test. This means you’ve been a full-time employee for 39 weeks following the first 12 months living in your new location. This equates to about nine months of full-time employment. Yes, this sounds complicated, as well. Even impossible if you moved any time after March. The IRS took this into consideration. So long as you anticipate 39 weeks of full-time employment in your new location, the IRS will allow you to claim the deduction. Just don’t forget to amend your return or file the amount as income the following year if you break that truce. The IRS giveth, and the IRS taketh away. These tests do not apply if you’re a member of the Armed Forces making a military move.

If you’re storing household goods in between residences, you can deduct the storage and insurance costs too. So long as you utilized the storage within a 30-day period of the beginning and end of your move, deduct away. For more enthralling tax details about moving expenses, see Publication 521, or visit the Atlas Van Lines website for valuable moving tax resources.