The Basics of Deducting Relocation Fees

Moving can be a pain in the neck. However, moving can be a necessary evil if you get a new job and your new job is far away from where you currently live. You may be able to write-off some of the fees associated with moving if you meet certain criteria. This article will discuss the relocation fees you can write-off on your taxes.MovingTruck

Rules for Deducting Relocation Expenses

In order to deduct your relocation expenses, you have to meet certain requirements. One requirement relates to the distance between your new job and your prior home; another requirement relates to the time you work at your new job. Your new job must be a minimum 50 miles from your prior home for the move to qualify for the relocation expense deduction. In order to meet the time test, you have to be employed full time for a minimum of 39 weeks during the first 12 months after the move to the new location. You can work for more than one employer to meet this rule.

If you are a married couple, only one person has to meet this rule. The time rule is a little bit different for self-employed people. Self-employed people have to work 78 weeks during the first 24-months of arrival at the new address. This time can be split between working for yourself and working as an employee.

What Fees Can You Deduct?

You can usually deduct fees associated with moving your belongings. So this includes the fees for renting your truck, paying your movers, or paying for storage. You can’t deduct the costs for meals.

Moving can be a harrowing adventure. You may be able to recoup some of the costs when you file your taxes. Be sure to keep good records during your move.

Image credit: Teemu Tuuloskorpi

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