Growth Group | Accounting for Musicians

Moving On Up

Whether you are moving across country from California to DC, or across town from Virginia to Maryland your moving expenses may be tax deductible. It’s summer and many people are moving to change job locations or start new businesses. Although, not all things are tax write-offs, some moving expenses are:

Can You Deduct Moving Expenses?

Anyone moving to start work, even if you don’t have a job prior to moving may deduct the costs to move on their personal income tax return if…

You move 50 miles away: Moving DistanceFor example, if your old job (blue) was 12 miles from your old home (orange) and your new job (red) is at least 62 miles from your old home (orange), you qualify!

Your relocate within one year: If you start your new job Jan. 1, you must be completely moved within one year before or after that date to qualify for the moving expense deduction.

What are moving expenses are a tax write-off?

Here are a few moving costs you may writeoff on your income taxes, if you qualify:

  • Moving using your car: either actual expenses for gas and oil or 23 center per mile, whichever produces the higher deduction.
  • Items used to transport your household items, such as boxes, tape, packing materials, etc. are deductible on your income taxes as a relocation expense.
  • If you utilize professional movers, you can deduct the cost paid for moving help.
  • Storage fees for keeping your items safe are deductible for up to 30 days, when moving.
  • Need to stay in a hotel for the night while moving? That hotel room is deductible.
  • Utilities are essential, therefore fees for connecting or disconnecting utilities are deductible when moving.

This is not a complete list, for more detailed information visit the IRS website or consult your personal tax accountant. Meals you purchased whether at fast food restaurants, hotels, or on an airplane are not deductible. Also, if your new or current employer pays for any part of your moving or relocation, you can not deduct that cost because only the amount that exceeds your employers relocation fees can be a write-off.