Moving Expense Deductions for a New Job

There are certain moving expenses one can deduct on a tax return when moving a significant distance for a new job, but they must meet several tests to qualify. Some are: (1) moving expenses must be incurred within one year of the date the taxpayer starts work; (2) the new job must be at least 50 miles further from the taxpayer’s old home than the old job; (3) after arriving at the new location, the taxpayer must work full time for at least 39 weeks during the first year at the new job; (4) one can deduct lodging expenses but not meals while moving; (5) one can deduct the cost of packing and transporting household goods; (6) one can deduct the cost of disconnecting and connecting utilities but (7) one cannot deduct the cost of car tags, drivers license renewal, security deposits and storage charges. As always, one must keep complete records of all costs one intends to use as a deduction.