Tax Breaks for Moving

published 9 September 2011

I’m moving next month. Can I deduct any of my expenses from my taxes?

The expenses may be tax-deductible if it’s a job-related move. The actual rule is tricky: To qualify, your new job must be at least 50 miles farther from your old home than your old job was from your old home. So if you used to commute 15 miles to your old job, your new job must be at least 65 miles away from your old home. It doesn’t matter whether this is your first job or you are relocating for a new position as long as you satisfy the distance test.

And you don’t have to itemize your deductions to qualify. You can write off the cost of hiring movers (or renting a moving truck) plus the cost of one-way travel to your new home for everyone in your household -- whether it’s airfare, train costs or 19 cents per mile if you drive. You can also deduct lodging expenses while traveling to your new home, the cost of packing your stuff and storing the goods within 30 days of the move, and the cost to disconnect utilities at your old residence and connect them at your new place. Report your moving expenses on Form 3903 when you file your tax return.

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For more information, see IRS Publication 521, Moving Expenses. Also see the IRS Tax Tip about moving for more information.

And for more advice that can save you money on your move, see 5 Cost-Saving Tips for Moving Time.

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.