Can Your Long Distance Move Be Tax Deductible?

Yes, long-distance relocation expenses can be deducted from your taxes, but only if you meet certain requirements. The Tax Cuts and Jobs Act of 2017 eliminated the deduction for moving expenses for most taxpayers, but there are still some exceptions.

Who Can Deduct Moving Expenses?

Y​ou can deduct moving expenses if you meet all of the following requirements:

• You moved for a new job or a permanent change of station in the military.
• Your new job or permanent change of station is at least 50 miles farther from your old home than your old job was.
• You meet the minimum time-of-employment requirement.

The minimum time-of-employment requirement is different for different taxpayers. For taxpayers who are not members of the military, the minimum time-of-employment requirement is 39 weeks (780 hours) during the first 12 months after you move. For members of the military, the minimum time-of-employment requirement is 180 days (360 hours) during the first 12 months after you move.

Which Moving Expenses Are Deductible?

​Not all moving expenses are deductible. The following moving expenses are deductible:

• Moving household goods and personal effects.
• Travel expenses (including lodging, but not meals) from your old home to your new home.
• Storing and insuring household goods and personal effects.

The following moving expenses are not deductible:

• Expenses for meals.
• Expenses for travel to your new job before you move your household goods and personal effects.
• Expenses for travel to your new job after you move your household goods and personal effects.
• Expenses for temporary living expenses.
• Expenses for car expenses.

How to Deduct Moving Expenses

​To deduct moving expenses, you must itemize your deductions on your tax return. You can use IRS Form 3903 to report your moving expenses.
Here are the steps on how to deduct moving expenses:

1. Gather all of your moving expenses. This includes receipts, contracts, and other documentation that supports your expenses.
2. Complete IRS Form 3903. Be sure to include all of your eligible moving expenses.
3. Attach Form 3903 to your tax return.
4. Itemize your deductions on your tax return.

Example

​Let's say you moved from New York City to Los Angeles for a new job. You incurred $10,000 in moving expenses. You meet all of the requirements for deducting moving expenses.
To deduct your moving expenses, you would complete IRS Form 3903 and attach it to your tax return. You would then itemize your deductions on your tax return. Your moving expenses would be added to your other itemized deductions, and they would reduce your taxable income.

Conclusion

​Deducting moving expenses can save you a significant amount of money on your taxes. However, it's important to make sure that you meet all of the requirements for deducting moving expenses. If you're not sure whether you qualify, you should consult with a tax professional.