If you're reading this post, then at some point, whether when planning your move or preparing for your taxes, it has occurred to you to wonder if you could deduct your moving expenses. We've got the answer.
Understanding Moving and Taxes
Unfortunately, unless you're an active duty service member and your move is because you are being stationed permanently in a new location, the answer is no. At least until 2025.
You expected there to be some deductions. You may even have heard of or remembered being able to deduct moving expenses in the past, but that changed in 2018.
Moves Reimbursed by Your Employer
If your employer reimbursed you for a move, then the amount they reimbursed now counts as part of your gross income.
Some states allow everyone to claim moving deductions for their state taxes. California and New York are two examples. This link tells you which states still allow deductions for moving costs for all residents.
Military members and spouses
If you are an active duty service member or the spouse of one, you can qualify under the following conditions.
If you are moving to your first active duty post, moving from one permanent post to another, or are leaving active duty and moving to a new home in the United States, you can deduct your moving expenses.
Spouses of imprisoned, deceased, or deserted active duty members can also qualify.
· direct moving costs of personal property
· car shipping
· utility changes
These deductions apply when moving to a home inside or outside the United States, provided it is because of a permanent station change.
Storage cost deductions apply for 30 days of storage when moving within the United States, but there is no limit to the amount of time covered when you are moving out of the country.
There are also many things that aren't deductible, such as:
· house hunting trips
· repeat trips to and from the old and new home
· closing costs and similar home-buying costs
· losses on the sale of your home
· real estate taxes
· lease expenses
· new drivers' license and car tags
· the purchase price of the new home
You can learn more, including particulars on what does and does not apply as well as which forms you need, at this page on the IRS website. There are detailed instructions on how to fill out the forms on this page as well.