The Key Factor in Claiming a Tax Break for Moving

published 14 August 2015

I’m about to move to Chicago to start a new job. Will any of my moving expenses be tax-deductible?

Take Our Quiz: Is It Tax Deductible?

It depends on how far you’re moving. You can deduct moving expenses if your new job is at least 50 miles farther from your old home than your old job was. If it’s your first job, the job must be at least 50 miles from your current home. You can’t deduct any part of the expenses that will be reimbursed by your employer.

You can deduct the cost of hiring movers (both for packing and for transporting your possessions) or the cost of renting a moving van. You can also deduct the cost of travel for yourself and the members of your household from your old home to your new home (including the cost of lodging, but not meals). If you drive, you can write off 23 cents per mile in 2015. You can also deduct the cost of storing your possessions for up to 30 days between moving and delivery.

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You don’t need to itemize to take the deduction. Submit Form 3903 when you file your taxes next spring. For more information, see IRS Publication 521, Moving Expenses. Save your receipts or credit card statements and a mileage log (if you’re deducting mileage) in your tax files.

For more information about moving, see Save Money on Moving.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.